Page 16 - FSUOGM Week 43 2021

FSUOGM NEWS IN BRIEF FSUOGM

issuer default rating (IDR) from negative the expenses of Gazprom Armenia. to $3.996bn. The agreement on exploration,
to stable and affirmed the IDR at 'BB+'. The development and production sharing of
strength of the sovereign balance sheets the Shah Deniz field was signed on June 4,
has been maintained during the pandemic Uzbekistan plans to 1996. The Shah Deniz Production Sharing
and is supported by Fitch's revised forecasts Agreement (PSA) was ratified on October
for oil prices over the past six months, suspend gas exports to 17, 1996. The field, located 70 km southeast
further reducing the risk of a chaotic of Baku, was discovered in 1999. The project
macroeconomic adjustment, Fitch said in its meet domestic demand includes BP (operator, 28.8% stake), AzSD
forecast. (10%), SGC Upstream (6.7%), LUKoil
Uzbekistan’s president, Shavkat Mirziyoyev, (25.5%), NICO (10%) and TPAO (19%).
has said he will move to suspend gas exports
Studies reveal to meet growing domestic demand. Azerbaijan produces
Central Asia’s most populous state
Turkmenistan accounted for currently exports gas to Russia, China, 586,200 barrels of crude oil
Tajikistan, Kazakhstan and Kyrgyzstan.
more than half of world’s concentrate on processing gas inside the in September
Mirziyoyev said that the country would
most severe methane country. "We used to sell gas, now we are The daily production of crude oil in
ready to buy it. Our industry needs it. Gas is
emissions in 2019 the wealth of the future generation,” he said. Azerbaijan in September amounted to
586,200 barrels, according to a statement
Gas, among other things, is to be used
Studies by monitoring firm Kayrros SAS in Uzbekistan to meet new demand from a released by the Ministry of Energy of
have revealed that Turkmenistan accounted $3.6bn gas-to-liquids (GTL) plant. Azerbaijan.
for 31 of the 50 most severe methane The annual gas processing capacity of "In September 2021, daily oil production
emissions at onshore oil and gas activities the complex is 3.6bn cubic metres, with (together with condensate) in Azerbaijan
during 2019, WION reported. installations producing 307,000 tonnes of amounted to 703,100 barrels. Of these,
Methane, despite being less common kerosene, 724,000 tonnes of synthetic diesel 586,200 barrels were crude oil, and
and shorter-lived than carbon dioxide, is far fuel, 437,000 tonnes of synthetic naphtha 116,900 barrels were condensate," the
more effective at trapping heat, making its and 53,000 tonnes of liquefied natural gas. statement said.
short-term global warming impact over 80 According to the decision of the
times higher than that of carbon dioxide. ministers of the OPEC+ countries, adopted
Human activities account for Azerbaijani Oil Fund in July 2021, Azerbaijan could have
approximately 60% of global methane a monthly increase in daily oil production
emissions, where agriculture, waste disposal announces revenue from by 7,000 barrels. That is, the daily crude
and fossil fuel production account for the oil production in September could have
majority of emissions. two major offshore deposits increased by 7,000 barrels compared to
Human-caused methane is responsible August – up to 633,000 barrels.
for at least 25% of today's global warming, The State Oil Fund of Azerbaijan (SOFAZ) Under the agreement reached at the 19th
according to the Environmental Defense has announced revenue from the Azeri- ministerial meeting in July, starting from
Fund. The United Nations Environmental Chirag-Guneshli (ACG) and Shah Deniz August, OPEC+ countries will increase daily
Programme's latest Global Methane offshore fields in the Azerbaijani sector of crude oil production by 400,000 barrels per
Assessment sees prevention of such the Caspian Sea. The ACG field generated month, and the cuts of 5.8 million barrels
methane emissions as the best option for $3.966bn in revenue in January-September will be completed by September 2022.
quickly slowing global warming. 2021, according to the fund's statement. From May next year, the "Declaration of
Since the ACG field was put into operation Cooperation" will be extended until the end
in 2001, the total revenue from the field has of 2022, with partial adjustments to the base
Armenia and Russia agree amounted to $153bn. level of oil production.
Azerbaijan expressed support for the
ACG is the largest oil deposit in
on gas price Azerbaijan. The first production-sharing decision taken in November to increase
daily oil production by 400,000 barrels
agreement for the development of the block
Armenia and Russia have come to terms of fields was signed on September 20, 1994. on October 4, at the 21st meeting of the
in respect of the price for gas supplied to On September 14, 2017, a new agreement OPEC + ministers. The new "Declaration
Armenia, Armenian Deputy Prime Minister was signed on the joint exploitation of of Cooperation" provides for an increase
Mher Grigoryan told reporters on Tuesday. these fields and production sharing. The in daily crude oil production in Azerbaijan
"Negotiations on gas prices are an agreement provides for the development by 7,000 barrels in November – up to
ongoing process. We reached an agreement of the deposits by the end of 2049. In ACG 647,000 barrels, within the framework of
for the gas price on the border and on the the shareholders are BP (30.37%), SOCAR commitments to reduce production by
territory of Armenia. Negotiations are (25%), MOL Group (9.57%, it replaced 71,000 barrels per day.
being held since 2019. Discussions were Chevron as of April 16, 2020) INPEX The 19th ministerial meeting decided to
fairly deep and we reached consensus on a (9.31%), Equinor (7.27%), ExxonMobil increase the daily crude oil production by
number of issues," Grigoryan said. (6.79%), TPAO (5.73%), ITOCHU (3.65%), 400,000 barrels per month starting from
Gazprom is the sole gas supplier to ONGC Videsh Limited (OVL) (2.31%). August, end the reduction of 5.8 million
Armenia. Gazprom Armenia also makes Revenues from the sale of gas and barrels in September 2022 and extend the
fuel deliveries on the domestic market. The condensate from the Shah Deniz field in "Declaration of Cooperation" until the end
Russian gas price increased from $150 to January-September 2021 made up $329mn. of 2022, with partial adjustments to the base
$165 per 1,000 cubic meters since January 1, The total revenue from the sale of gas and level of oil production.
2019. Gas is sold at a higher price to private condensate from the Shah Deniz field since
consumers on the basis of state taxes and it was commissioned in 2007 has amounted

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