Page 16 - FSUOGM Week 25 2022

FSUOGM NEWS IN BRIEF FSUOGM

Kyiv acquires 10bn cubic Iran, Azerbaijan agree on previously been limited to the Sardar-e
Jangal field, which was discovered in 2002 at
metres of gas for heating joint Caspian gas projects a time when Iran’s total share of the Caspian
gas take was assumed to be around 11 tcf
season and allocates six The Azerbaijani Oil Ministry announced (312 bcm).
In 2012, a routine exploration at Sardar-e
on June 19 that Baku and Tehran have
CHPs to Naftogaz agreed to establish a joint committee for Jangal led to the discovery of an oil layer
the development of oil and gas fields in the
– at 728 metres – that is now estimated to
Kyiv announced that 10bn cubic metres Caspian Sea. hold 2bn barrels of quality crude, of which
of gas has been acquired, more than half Iran and Azerbaijan have been in at least 500mn barrels is thought to be
the requirement for Ukraine’s upcoming intense discussions for several months recoverable.
heating season, Ukraine Business on progressing long delayed projects Following the 2015 nuclear deal, Iran
News reported on June 20. between the two neighbours in recent years, had hoped to license Caspian exploration
The Cabinet of Ministers previously including oil and gas projects in the region blocks under its Iran Petroleum Contract
stated that Ukraine needs to store 19 bcm of and trade links to Russia. (IPC) framework and pursue development
gas and raise the volume of coal in thermal In a statement, the Oil Ministry said of Sardar-e Jangal, but this came to nought.
power plants (TPPs) and combined heat and that “the agreement could help secure Chalous is located around 50-60km
power plant (CHP) warehouses to at least joint development, production and export south of Sardar-e Jangal and around 135km
2mn tonnes. of energy resources to benefit the two north of the port of Noshahr.
“The government approved a document neighbouring countries.” In February, KEPCO and PetroIran
stipulating that at the beginning of On June 3, Azerbaijani Economy Development Co. signed a memorandum
the heating season in October, our Minister Mikael Jabarov and Iranian Oil of understanding (MoU) for exploration
underground gas storage facilities must have Minister Javad Owji signed a memorandum and production efforts in the Caspian, with
sufficient gas reserves for the uninterrupted of understanding (MoU) in Baku to Sardar-e Jangal to be given priority.
passage of the heating season under any strengthen bilateral co-operation in the gas Iran’s sole Caspian export terminal at
circumstances. These are guarantees that sector in Tehran. Neka has a capacity of 150,000 bpd, with
the country will be warm and we will be During recent visits by the Iranian this capacity already mostly taken up by
able to spend the next winter in peace. Now minister, both countries exchanged views exports to other Caspian littoral states.
our CCP has more than 10 bcm, and this on the current state of trade between the
volume is constantly growing,” stated Prime two countries, as well as possibilities for
Minister of Ukraine Denys Shmyhal. expanding co-operation in a variety of
Fears over the coming heating season fields, including oil and gas. Russia’s TATNEFT and
have led Ukrainian President Volodymyr In March, Azerbaijan’s ambassador to
Zelenskiy to claim this will be the Iran Ali Alizada said that authorities in Kazakhstan’s KazMunayGas
“most difficult winter of all the years of Baku were evaluating Iranian proposals
independence” as the country struggles with for offshore oilfield development. These express intent to go ahead
the devastation of war. comments followed the disclosure by
Zelenskiy has urged the government and Iranian Oil Minister Javad Owji in with Karaton-Sarkamys
local authorities to keep the cost of utilities November that preliminary agreements
down to pre-war levels for the winter season had been signed between the parties for exploration project
and banned the export of fuel, oil, gas and coal. a gas swap and fuel supply to Azerbaijan’s
The government also allocated six Nakhchivan exclave, adding that he hoped a Russia’s TATNEFT and Kazakh state-run
CHPs to Naftogaz to ensure constant heat deal could be extended for the development company KazMunayGas (KMG) signed
and electricity supply, Ukraine Business of two offshore fields. an agreement expressing their intent
News reported. The Caspian accounts for the majority to implement the Karaton-Sarkamys
“This will allow more efficient use of Azerbaijan’s 570,000 barrels per day exploration project in Kazakhstan’s Atyrau
of resources and management of these (bpd) of oil production, but none of the Region.
enterprises, as well as prepare them for 2.5mn bpd produced by Iran, which mainly The document was inked at the St
winter,” Shmyhal said. comprises output from fields along the Iraqi Petersburg International Economic Forum
Moreover, Naftogaz will supply natural border, southern coast and offshore in the by general director of TATNEFT Nail
gas to gas distribution system operators Persian Gulf. Maganov and KMG management board
at a fixed price during martial law and In August 2021, the Khazar Exploration chairman Magzum Mirzagaliyev. The
six months after its end. Most of these and Production Co. (KEPCO), a National agreement reconfirms the intentions of
operators have now become state property. Iranian Oil Co. (NIOC) subsidiary, said cooperation between KazMunayGas and
“The government's decision is another that appraisal of the Chalous structure in TATNEFT in the implementation of the
step towards stable gas supplies to all 2,260-square km Caspian Sea Block 29 had Karaton-Sarkamys project.
consumers and stable operation of our gas identified major gas resources, equivalent to Mirzagaliyev commented: "We are
transmission system,” announced Shmyhal. a quarter of the supergiant South Pars gas actively developing cooperation in a
This decision comes after the Kharkiv field, which holds 14.2 trillion cubic metres variety of areas - from the supply of goods
CHP-5 thermal power plant (TPP) had to (tcm) of gas reserves in place plus 18bn and equipment to the organisation of
suspend operations due to increased gas prices barrels of gas condensate. KEPCO CEO Ali activities to increase the oil recovery of
set by Naftogaz Trading. Chairman Oleksandr Osuli said that the structure could contain mature fields."
Minkovych called on officials to take action 30% of all recoverable gas reserves in the
before the start of the colder months. Caspian.
Iranian success in the Caspian had

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