Page 13 - FSUOGM Week 48 2022

FSUOGM NEWS IN BRIEF FSUOGM

China concerned about Kazakh 2019, SOCAR and TOTAL completed the conversation to explore the actual execution
of the MoU. "Azerbaijan has always been
drilling of the production and appraisal well
gas supplies this winter "ABD-001" with a depth of 7,411 meters and will continue to be one of the essential
at the Absheron field. The field's reserves
and reliable EU partners contributing to
Chinese Prime Minister Li Keqiang told his amount to 350-360 bcm of gas and 100mn Europe's energy security," he added.
Kazakh counterpart, Alikhan Smailov in a tonnes of condensate, and its development Furthermore, when referring to the
video conference call on November 29 that will be carried out in stages. agreements signed during President Ilham
China hopes that Kazakhstan is prepared At the first stage, the volume of Aliyev's visit to Serbia, the ambassador
to increase the amount of natural gas it production will be 1.5 bcm per year. At its indicated that they may be separated
supplies over the winter. peak, the project can produce about 5 bcm into short and mid-term implementation
The remarks appear to be a reference to of gas per year. The field will also produce periods. "As a result, we plan to hold a
the Kazakh government pledging to limit about 10,000 barrels of condensate daily. series of meetings next year, the 30th
exports to meet domestic demand. anniversary of the establishment of
“We hope that Kazakhstan will in diplomatic relations between our countries,
keeping with its contract ensure stable Azerbaijan to back Albanian to discuss the possibilities of enhancing
deliveries of gas to China and maximally cooperation in the political, economic, and
increase them during the winter months,” energy infrastructure humanitarian spheres. There is also a strong
Keqiang was quoted as saying. The emphasis on cultural interaction, with a
comments were aired on Chinese state Azerbaijan is open to investments week of Azerbaijani culture planned for
television and reported by Russia’s TASS in Albania, particularly in energy Turin in 2023," he concluded.
news agency. infrastructure, according to Azerbaijan
Earlier this year, Kazakh President Ambassador to Albania Anar Huseynov,
Kassym-Jomart Tokayev ordered his who spoke to Argumentum.al on ACG oil output in 2024-2026 will
government to reduce gas exports and 28 November. The envoy expressed
ensure that an additional 2bn cubic metres optimism that Albania might benefit from be about 123mn barrels per year
of natural gas were available for domestic Azerbaijan's natural gas but noted that a
consumption. lack of sufficient infrastructure hindered The average annual oil production at the
“Meeting domestic demand for gas has matters. Azeri-Chirag-Guneshli (ACG) block of
an unconditional priority over export,” "As a result, Baku wishes to discuss the fields in 2024-2026 is projected at about
the president told a conference of foreign possibility of investing in Albania's gas 123mn barrels, according to the Accounts
investors. infrastructure, beginning with a separate Chamber summary of the draft budget of
The increase in Kazakhstan’s domestic settlement. If the investment is successful, the State Oil Fund of Azerbaijan (SOFAZ)
needs for the fuel are driven by the the scope of the project may expand," he for 2023. According to preliminary
conversion of major electricity-generating said. forecasts, production at ACG will be
plants in the commercial capital, Almaty, Speaking of the memorandum of 125mn, 121mn and 122mn barrels in 2024,
from coal to gas in order to reduce understanding between Azerbaijan and 2025 and 2026 respectively.
pollution along with plans to rely on gas as the EU on strategic partnership in the In 2021, ACG production amounted
a transition fuel to green energy. energy sector, he added that it has become to 167mn barrels, in 2022 it is expected to
a new milestone in relations and includes a reach 153.1mn barrels, and the forecast for
commitment to double the capacity of the 2023 is 129.6mn barrels.
TotalEnergies to pay $21mn to Southern Gas Corridor to deliver at least Guneshli (ACG) block of fields in January-
Oil production at the Azeri-Chirag-
20 bcm to European markets annually by
SOFAZ in 2023 2027. He noted that this will help the EU September was about 114mn barrels (15mn
tonnes), which is 9.5% lower than in the
achieve its diversification goals, noting that
The State Oil Fund of Azerbaijan Azerbaijan is already expanding natural gas first nine months of 2021.
(SOFAZ) predicts that in 2023 it will exports to the EU from 8.1 bcm in 2021 to a The contract for the development of
receive a $20.8mn bonus from the French projected 12 bcm in 2022. the Azeri, Chirag and deepwater Gunashli
TotalEnergies in connection with the start "The EU and Azerbaijan also share the fields was signed on September 20, 1994,
of production at the Absheron gas field. goal of accelerating the development and and entered into force on December 12 of
"Next year SOFAZ's revenues in the form deployment of renewable energy generation the same year. This agreement expires in
of a one-time bonus from TotalEnergies and transmission capacity in order to fully 2024. However, on September 14, 2017, a
are envisaged at the level of $20.8mn. The capitalise on the synergies between the EU's new contract for the development of the
company will pay them 30 days after the clean energy transition and Azerbaijan's ACG block, that would extend the deal until
start of production at the Absheron field," a significant untapped renewable energy 2050, was signed in Baku.
source in the government said. potential, particularly in the offshore energy Under the new contract, the share of
Azerbaijani President Ilham Aliyev said sector." The two sides also recognize the British BP (project operator) is 30.37%,
on November 25 that it is planned to start significance of the Global Methane Pledge SOCAR (25%), Hungarian MOL (9.57%),
gas production at the Absheron field in and realize that making the natural gas American ExxonMobil (6.79%), Indian
the Caspian in 2023. The Absheron field supply chain as efficient, ecologically and ONGC (2.31%), Japanese Inpex Corp.
is being developed by the Joint Absheron climate-friendly as feasible is a shared (9.31%) and ITOCHU Oil (3.65%),
Petroleum Operating Company (JOCAP), duty. The memorandum of understanding Norwegian Equinor (7.27%), Turkish
established by SOCAR Absheron (50%) and encourages the development of programmes TPAO (5.73%). Investments under the
TOTAL E&P Absheron (50%). The contract to collect natural gas that would otherwise new agreement are estimated at $43bn for
was signed for a period of 30 years. The be vented, flared, or discharged into the the period up to 2050. The volume of oil
contract area is 747 km2. atmosphere. Following the signing of the production is planned to be more than
The Absheron block is located 100 km memorandum of understanding, the parties 500mn tonnes.
from Baku at a depth of 500 meters. In agreed to convene a ministerial-level energy

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