Page 21 - FSUOGM Week 42 2021

FSUOGM NEWS IN BRIEF FSUOGM

by 48% to 4.4bcm. During the reporting of Appeals dismissed the claims of the West development located 75 kilometres
period, 2.4bcm of gas was consumed in the lawyers representing the Palmali Group offshore in the Caspian Sea.
country, which is 8% more than the same of companies and upheld the trial court's The company initially supported the
period last year. decision of 7 October 2021 to seize the engineering and construction contractor
In July-September 2021, SOCAR refined defendants' property. The decision of the ILK Insaat with load-out of the jacket for
1.8mn tonnes of oil, which is 46.5% more appellate court is final. SOCAR's claims the Garagol Deniz Drilling Platform A.
than in the same period last year. This sharp to seize the assets of the defendants have The firm was later invited to return to the
increase is explained by the fact that the already been upheld in Azerbaijan and same site to complete the load-out of the
periodic repairs at the Heydar Aliyev Oil Malta. platform’s topsides.
Refinery last year coincided with the third The Supreme Court of the Republic During the campaign the company
quarter of the year. In the third quarter of of Azerbaijan has already recognized the deployed 24,600 tonnes of load cells, four
this year, the plant did not stop for periodic decision of the international arbitration 600-tonne strand jacks and two hydraulic
repairs. During the quarter, SOCAR's gas courts by its decision dated September breakout jacks.
processing plant processed 812mcm of gas. 8, 2021. Turkish and Maltese courts are The Garagol Deniz Drilling Platform
In the third quarter, the volume of currently considering the recognition of is set to start service before the end-
oil and gas refining and petrochemical arbitral awards. 2020. The platform is designed to operate
products exported by the company also It should be noted that SOCAR, SOCAR automatically without the need for onboard
increased significantly. SOCAR exported Trading SA, SOCAR Overseas Ltd. and staff.
from Azerbaijan about 1.1mn tonnes, i.e. Azerbaijan (ACG) Limited sued Palmali
88% more oil refining and petrochemical Group and its head Mubariz Mansimov
products compared to the same period last in three independent arbitration courts - Azerbaijan ups export of oil
year. Of course, for this reason, the increase the International Court of Arbitration in
in production at oil refineries played an London, the London Maritime Association via northern route by 2.3
important role in this growth. At the same and the United Nations Commission on
time, there was a significant increase in International Trade Law (UNCITRAL) times
exports of chemical products such as high- for breach of obligations under various
pressure polyethylene, absolute isopropyl commercial agreements in 2018. As a Zaur Gahramanov, General Director
alcohol and urea. result, in 2020-2021, all three independent of SOCAR Turkey Energy, the Turkish
arbitration courts ruled in favour of subsidiary of the State Oil Company of
SOCAR. The arbitral tribunals ruled that Azerbaijan (SOCAR), said the company
SOCAR wins court battle Mubariz Mansimov, the head of the Palmali has so far invested $16.5bn in Turkey and is
negotiating new investments. "We want to
Group of Companies and the group, should
against arrested Azerbaijani pay more than $240mn in compensation grow in the petrochemical and gas sectors
to SOCAR while rejecting the defendant's
in Turkey first," he said at a conference on
businessman counterclaims. Interest will continue to "Azerbaijan's values today and in the recent

accrue until Palmali pays in full.
past" in the city of Istanbul.
SOCAR, the State Oil Company of the Mubariz Mansimov has been arrested The director-general first spoke about
Azerbaijan Republic, released a statement in Turkey on allegations based around the newly signed gas agreement between
about its latest court battle against Palmali having a link to the Gülen movement Azerbaijan and Turkey. "The agreement on
Group, owned by Mubariz Mansimov on since 15 March 2020. He entered the oil the supply of 11.5bcm of gas to Turkey for
October 15. The statement said, "due to transportation trade with then-prime the next three years is in force as of October
the failure of the International Court of minister Erdoğan’s son Bilal Erdoğan and 1. At present, there is no discussion about
Arbitration to fulfil its obligations under his brother Mustafa Erdoğan in 2000s. other volumes. But Azerbaijan has large gas
various commercial agreements, SOCAR Mansimov became one of the successful reserves. Both Umid-Babek, Absheron and
appealed to the courts of Azerbaijan, Turkey figures in Turkey in a short time. However, Shah Deniz are in their third phases. Thus,
and Malta to recognize and enforce the his relation with SOCAR deteriorated using these resources in the future, the gas
decisions in favour of SOCAR in connection and Mansimov countersued SOCAR but, will probably come first to Turkey and then
with the Palmali Group of companies and meanwhile, his Palmali Group came to the to Europe," he said.
its leader Mubariz Mansimov." brink of bankruptcy. Finally, Mansimov was
The company also filed a lawsuit arrested and his company went bankrupt.
with the courts and authorities of these
countries to seize the property of the
Palmali Group of companies and its head SOCAR is negotiating
Mubariz Mansimov in order to enforce the
decisions of the International Arbitration additional investments in
Court. The Turkish court of the first
instance has already ruled in favour of Turkey
SOCAR's claim to seize the property, but
the defendant's lawyers objected to this Mammoet has loaded out a new drilling
decision. The Istanbul Regional Court platform for Turkmenistan’s Garagol Deniz

Week 42 20•October•2021 www. NEWSBASE .com P21