First gas-condensate reserves were found at a depth of 7189 meters in an exploration well drilled on the Shafag-Asiman block in the Azerbaijani sector of the Caspian Sea. Herewith the logging and drilling of the Fasila stratum of the field was successfully completed. To define the exact volume of hydrocarbon reserves, the parties of the project are going to work out a technical plan for drilling of an additional lateral well in the direction of the structure’s arch.
Exploration work on the Shafag-Asiman block is a joint project of SOCAR and bp. According to the Production Sharing Agreement, bp is the operator of exploration drilling. On January 11, 2020 SOCAR's subsidiary Caspian Drilling Company’s started drilling the exploratory well on the 623-meter deep seabed by Heydar Aliyev Semi-Submersible Drilling Rig.
The President of the Republic of Azerbaijan Ilham Aliyev said: “The history of cooperation between bp and SOCAR comprises a period of about 30 years. During this period, many projects of global importance have been carried out. These include such joint projects as the development of Azeri-Chirag-Gunashli (ACG) block, the Baku-Tbilisi-Ceyhan (BTC) pipeline, the Shah Deniz, the Southern Gas Corridor (SGC) and its elements - the SCP, TANAP and TAP pipelines.
On March 16, SOCAR President Rovnag Abdullayev met a delegation led by Al Cook, Executive Vice President for Development and Production International of Equinor. The meeting focused on the development of Karabakh field and the exploration of prospective structures, carried out jointly by SOCAR and Equinor on equal sharing basis. The participants discussed the results of preliminary exploration work on Dan Ulduzu - Ashrafi - Aypara prospects and possible scenarios for next steps.
The Exploration of Dan Ulduzu - Ashrafi - Aypara was launched in the second half of 2018, 2D and 3D seismic exploration was completed in 2019. The results were processed in 2020, and their interpretation is currently underway. Preliminary results of interpretation demonstrated that oil and gas reserves in these prospects are higher than previously expected. Exploration drilling may be carried out in the future to prove the reserves.
The encouraging results from the new prospects could necessitate the reconsideration of development plan of the Karabakh field. In the coming weeks, a joint working group of SOCAR and Equinor shall consider various options for the continuation of Karabakh project and explore opportunities for synergy between the development of Karabakh field and prospective new fields.
In the meeting, the importance of Azerbaijan for Equinor was emphasized and the intention to grow in this country was expressed. The parties aim to reach the highest levels of production on the jointly exploited fields during this decade, when oil and gas prices are expected to peak. From this viewpoint, it is important to accelerate the exploration and drilling on these structures.
With the vision of becoming one of the world's most digital refineries, STAR Refinery, which has invested more than $70 million in its technological equipment during the establishment phase, has entered the Global Lighthouse Network, the World Economic Forum’s (WEF) manufacturing community that includes companies adopted Fourth Industry Revolution Technologies in their production operations. STAR Refinery, the only company from Turkey selected for the Future of Manufacturing league this year, became the first refinery in the world to receive this award.
STAR Refinery, a subsidiary of SOCAR Turkey, the largest foreign direct investor in Turkey, with a value created by its digital technologies, was selected for the Global Lighthouse Network, the World Economic Forum’s Advanced Manufacturing and Production Platform. Becoming the first refinery in the world selected for the Future of Manufacturing/Global Lighthouse Network, STAR Refinery was the only company that joined this network from Turkey 2021.
Zaur Gahramanov, CEO, SOCAR Turkey said: “In 2020, it was Petkim, the only company selected to this network from Turkey in 2020. A year later, a company, which represents another segment in refinery-petrochemicals integration at our Group, STAR Refinery joined this league. We are proud that two companies of our Group won this award one after another. STAR Refinery, becoming the first refinery in the world to win this award, shows that its operations could be an example for the world in terms of digitalization.”.
The arbitral award dated3rd February 2021 was issued by arbitration tribunal acting in accordance with the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) in favor of Azerbaijan (ACG) Limited, a company within SOCAR Group.
The London-seated tribunal awarded to Azerbaijan (ACG) Limited a monetary compensation exceeding USD 132,000,000 in the third arbitration between companies, belonging to SOCAR Group and Palmali Group. This was the last of three arbitration proceedings initiated by companies belonging to SOCAR Group against the companies of Palmali Group and Mubariz Mansimov due to the violation of commitments to SOCAR Group by Palmali Group and Mubariz Mansimov.
Ultimately, three independent tribunals acting under the arbitration rules of the London Court of International Arbitration, London Maritime Arbitrators Association and United Nations Commission on International Trade Law ruled in favour of SOCAR Group and awarded to SOCAR Group a monetary compensation exceeding USD 240,000,000 and dismissed all Palmali's counterclaims.
NOTE: For reference, please see our previous reports on the first and second arbitration.
The State Oil Company of the Azerbaijan Republic (SOCAR) is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate.read more
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