News Archive

17 July 2019

Drilling, production and export rates for the second quarter of 2019

+

In the second quarter of 2019, SOCAR produced 1,9 million tons1 of oil and 1,7 billion cubic meters2 of gas on its own and managed to maintain the production level relatively stable compared to the same period of the previous year.

The company continued to implement a series of comprehensive measures to keep production level stable in the oil and gas fields exploited by itself. The operation of some out-of-exploitation wells has been resumed and drilling of new wells has increased the overall drilling capacity compared to the same period of last year. Thus, in the second quarter of 2019, the company performed more than 41,000 meters3 of drilling work.

SOCAR exported 4.9 million tons4 of crude oil, including profit oil of ACG, 172 million cubic meters5 of natural gas, 604 thousand tons6 of oil and petrochemical products. During the period there was a decline in the export of crude oil from SOCAR, but 48 percent growth in the export of oil and petrochemical products was recorded. It shows that one of the factors that led to a decline in crude oil and gas exports was the direction of more products to the processing.

In the second quarter, more than 9 million tons7 of oil and 8 billion cubic meters8 of gas, including the rates of other production companies in Azerbaijan, were produced in the country. More than 2.4 billion cubic meters9 of natural gas was exported from the country during that period. The increase in natural gas exports associated with the launch of the Southern Gas Corridor amounted to about 37 percent compared to the same period of last year.

Academician Khoshbakht Yusifzade, First Vice President of SOCAR, said: ''There are rich and professional oil traditions in Azerbaijan, homeland of the world's oldest oil industry. On the other hand, the fact that the world's oldest and longest-running fields are in our country creates challenges before us. From this point of view, our main goal in the upcoming period is to extend the life of the existing fields through all means.

On the other hand, the successful development of new fields creates conditions for increasing gas production in our country and some balancing oil and gas revenues in the future. We expect 20 percent of growth in the country’s gas production by the end of 2019. In the coming years, gas production in the country will grow on the rising line. This positive trend also opens new opportunities for the development of gas processing and the chemical industry.''

1 - 1,928 million tons

2 - 1,672 billion m3

3 - 41,593 thousand meters

4 - 4,911.586 million tons

5 - 172,292 million m3

6 - 604,6 thousand tons

7 - 9,061 million tons

8 - 8,238 billion m3

9 - 2,421.574 billion m3

1 July 2019

TANAP is fully ready to deliver natural gas to Europe from July 1

+

TANAP - major section of Southern Gas Corridor completed

The Trans Anatolian Natural Gas Pipeline (TANAP), the major segment of the Southern Gas Corridor is ready to supply Azerbaijani gas directly to Europe from July 1, 2019. After completion of the Trans Adriatic Pipeline (TAP), the last section of SGC, the natural gas produced from Azerbaijan’s Shah Deniz 2 field will be delivered to Europe via TANAP and TAP, adding to the country’s income and making an important contribution to the European energy security. TANAP is now the longest and widest natural gas pipeline in Turkey, Middle East and Europe. The Trans Anatolian Natural Gas Pipeline, one of the most important projects of long-term strategic energy cooperation between Turkey and Azerbaijan, is complete. The 1850-km pipeline begins in the Turkish Posof district of Ardahan, runs through 20 provinces, 67 districts and 600 villages and reaches Europe at the Greek border in the Ipsala district of Edirne, is ready to deliver the first natural gas to Europe via Trans Adriatic Pipeline (TAP) on the border of Turkey and Greece from July 1, 2019.

TANAP is the most important link of the Southern Gas Corridor, designed to transport natural gas produced from Azerbaijan’s Shah Deniz-2 field initially to Turkey and onwards to Europe. The section of pipeline from the Turkish border with Georgia until Eskişehir of Turkey was launched in an international opening ceremony on June 12, 2018 with the flow of commercial gas to Turkey from June 30, 2018. The final mechanical work in the pipeline between Eskişehir and the Turkish-Greek border was completed at the end of 2018 with the first test pumping held in April 2019. TANAP, which is now fully ready to transport natural gas to Europe, is the longest and widest natural gas pipeline in Turkey, Middle East and Europe. Next year, after the completion of TAP which connects with TANAP on the Turkish-Greek border, Azerbaijan will start delivering gas to European markets.

Rovnag Abdullayev, President of SOCAR, said in his statement:

“The Southern Gas Corridor and TANAP is reality now. We launched natural gas delivery via TANAP to Turkey in a ceremony attended by the distinguished presidents of Azerbaijan and Turkey last year. Today TANAP is ready to supply natural gas to Europe and we are expecting the work on TAP pipeline to be completed. Azerbaijan has demonstrated to the world that we are more than capable of delivering complex transnational projects both at home and abroad in a timely fashion with high efficiency. During the implementation of TANAP, SOCAR and its partners saved about $5 billion, reducing the overall cost of the project by 40%. This is a great achievement of the Azerbaijani and Turkish people, who under the leadership of the distinguished presidents of Azerbaijan and Turkey Mr. Ilham Aliyev and Mr. Recep Tayyip Erdogan has entrusted us with such a historic mission.”



SOCAR President expressed gratitude to all who contributed to TANAP project: “We express our sincere gratitude to distinguished leaders of our states, who are always guiding and encouraging us, to Azerbaijani and Turkish public institutions and organizations, our partners in the project - all governmental bodies of Azerbaijan, represented by the Southern Gas Corridor CJSC, who trusted and supported us, BOTAS and BP and their leaders, as well as tens of thousands of workers and TANAP employees, who worked enthusiastically and built this project step by step, to Mr. Saltuk Düzyol, distinguished TANAP CEO, who has headed the project, to the contractors, suppliers and all of our partners, who contributed to our success with their knowledge, skills and forces, to the civil society groups, who supported us throughout the project activity, the journalists, who fulfilled their responsibilities in informing and enlightening society. We express our sincere thanks to the dear people of Azerbaijan and Turkey who make us stronger and brighten our way”.



The legal framework for the TANAP project was established in 2012. The final investment decision on the project was adopted on December 17, 2013. The construction work began in 2015 following the groundbreaking ceremony in Kars attended by the presidents of Azerbaijan and Turkey Mr. Ilham Aliyev and Mr. Recep Tayyip Erdogan. The first phase of TANAP from Turkish-Georgian border to Eskişehir was completed in June 2018. Its opening ceremony was held on June 12, 2018 and attended by the leaders of the two countries. Transportation of the first commercial gas to Turkey began on June 30, 2018. The second phase of the project from Eskişehir to Turkish-Greek border was successfully completed by the end of June 2019. The project’s investment cost was estimated at $11.7 when the final investment decision was made. Thanks to timely purchase decisions and maximizing the management efficiency this figure has been revised down to less than $7 billion.

Around 1000 social and environmental projects have been implemented in the course of TANAP construction, which helped to achieve exemplary standards in pipeline quality, environment protection, health and safety of workers.

TANAP stakeholders are Southern Gas Corridor CJSC, a joint venture of SOCAR (49%) and the Ministry of Economy of the Republic of Azerbaijan (51%), BOTAS (30%), BP (12%) and SOCAR Turkey Energy A.S (7%).