THE OFFICIALS OF THE SOCAR THINK THAT THE EXPLORATION DRILLING ON THE STRUCTURE "INAM" WILL BE CONTINUED FROM THE SEMI-SUBMERSIBLE FLOATING DRILLING RIG "ISTIGLAL"
BAKU.17.05.2004.MEDIA-PRESS:
The exploration drilling on the perspective structure "Inam" in the Azerbaijan sector of the Caspian Sea will be continued most likely from the semi-submersible floating drilling rig (SSFDR) "Istiglal".
BAKU.17.05.2004.MEDIA-PRESS:
The future of the JC LUKAgip (the Russian Oil Company "LUKoil" and Italian Agip) will be solved up to the end of May. The Chief of "LUKoil" Mr. Vagit Alekperov has said about this.
BAKU.17.05.2004.MEDIA-PRESS:
Prices for oil have achieved new records in their history - $41.63 for barrel during electronic sales in the system of the New-York goods barge.
BAKU.17.05.2004.MEDIA-PRESS:
The government of the USA has appealed to the government of the USA with offer to include Azerbaijan into the program "Millenium Challenge Account", the Minister of Finances Mr. Avaz Alekperov has said.
BAKU.17.05.2004.MEDIA-PRESS:
On May 25 - 26 three Russian organizations - the Foreign Political Association (FPA), the Association of the Russian Diplomats (ARD) and the All-World Peacemaking Organization (AWPO) will conduct the second "round table" of representatives of the Russian, Azerbaijan and Armenian community on a matter of the Karabakh adjustment - "Karabakh From Stagnation to Progress, From Truce to Peace". The forum is devoted to ten years anniversary of fire stop in Karabakh (May 12), the national holidays of Azerbaijan and Armenia (May 28) and the International Peacemaker's Day (May 29).
BAKU.17.05.2004.MEDIA-PRESS:
The authorities of Georgia have started the preparation for the summit meeting of GUUAM in Batumi, which should take place on June. Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova join to this organization.
BAKU.17.05.2004.MEDIA-PRESS:
The President of Azerbaijan Mr. Ilham Aliyev has departed today (on May 17) to Brussels for discussing issues of enlarging bilateral cooperation.
BAKU.17.05.2004.MEDIA-PRESS:
The State Oil Company of the Azerbaijan Republic has completed the construction of the offshore stationary platform (OSP) N13 in the shallow area of the field "Guneshli". Expectedly, the President of Azerbaijan Mr. Ilham Aliyev will visit to the platform.
BAKU.17.05.2004.MEDIA-PRESS:
The State Oil Company of Azerbaijan (the SOCAR) has worked out the programs of the development for 2004 - 2008 providing stabilization of volumes of oil production within current volumes of 8.8 MM tons per annum, the President of the SOCAR Mr. Natiq Aliyev has said.
BAKU.17.05.2004.MEDIA-PRESS:
In Baku the official opening of the core storage has been opened; the JCCT "Azlab" has built it. The meaning of this object, by the words of the specialists is very valuable, because cores collected at drilling of well will not thrown away as before, but will serve to geologists, drilling, oil and gas workers.
BAKU.17.05.2004.MEDIA-PRESS:
On the third advanced well of the gas condensate field "Shakh-Deniz" 5300 meters have been passed. As Media-Press has been informed in the State Oil Company of Azerbaijan (SOCAR) during the carotage works, instrument has been ceased ad so some time was required for its taking out. For this the drilling was stopped, however tomorrow it will be restored.
BAKU.17.05.2004.MEDIA-PRESS:
On the gas condensate field "Shakh-Deniz" else fourth exploration borehole will be drilled. However, most likely it will occur after drilling the exploration borehole on the other offshore structure "Inam".
BAKU.17.05.2004.MEDIA-PRESS:
The Azerbaijan gas deliveries to Greece within frameworks of the contract on the development of the field "Shakh-Deniz" will be possible in 2007. The President of the State Oil Company of the Azerbaijan Republic (SOCAR) Mr. Natiq Aliyev has declared about this.
BAKU.17.05.2004.MEDIA-PRESS:
For the present there is not concrete agreement with shareholders of the project of the development of the field "Kashagan" in the Kazakhstan sector of the Caspian Sea on oil pumping by the pipeline Baku - Tbilisi - Ceyhan (BTC), the President of BP-Azebaijan Mr. David Woodward has said.
As Media-Press has been informed in the SOCAR, a drilling from the other analogous rig "Leader" will cost higher. Moreover, the company BP-Azerbaijan has carried out the modernization of "Istiglal" and large means have been transferred for this. The technical rates are not worse than ones of "Leader", however, operations on it are executed more rapidly in spite of that that processes on "Leader" are more automatic.
At the same time the President of the Company BP-Azerbaijan has told in the interview to journalists that for the present the shareholders of the project has not chosen finally a drilling rig.
The exploration drilling on the perspective structure "Inam" in the Azerbaijan sector of the Caspian Sea will be restored in the beginning of 2005. The President of BP-Azerbaijan Mr. David Woodward has informed about this on the press conference in Baku.
Up to date a new seismic map of the contract area has been made up, a point of construction of exploration well, which was approved by the partners of BP by project - the company Shell and the State Oil Company of Azerbaijan. The preparation works will be continued for 2004 totally.
By the works of Mr. D. Woodward, now the issue of determination of a drilling rig, from which sinking will be made, is considered. Either "Leader", "Istiglal" or SSDR will be this one.
As Media-Press has been informed, drilling of the first exploration well INX-1 was stopped in the spring of 2001 on a depth of 4550 m (at a project depth of 5025) for high stratum pressure. In connection with this a decision of not renewing of drilling until optimal version of activities continuation is found. Particularly a choice was concluded in continuation of sinking with using of the special equipment and drilling of new well. Just then Mr D. Woodward has noted that the first drilling well will remain preserved. If the second exploration well gives positive results, a possibility for restart of drilling works on the first one will be considered.
The contract of PSA type on exploration and development of the structure "Inam" was signed on July 21, 1998 and ratified on December 1, 1998 by the parliament of the country. The shareholders: the SOCAR - 25%, BP - 25%. Shell - 25%. A depth of the sea makes 30 - 150 meters. A total length of productive stratums makes 18 km, a width - 4.5 km, height - 700 m. A depth of location of productive stratums makes about 4500 meters.
By estimations of the specialists of the SOCAR, hydrocarbon supplies on "Inam" make 100 MM tons of oil and 100 bn cubic meters of gas. By conditions of the contract in case of revealing of the industrial oil supplies the field "Inam" will be operated for 25 years. Investments to the project will make $1.7 - 2 bn.
WHO WILL REPLACE THE JC LUKAGIP IN THE AZERBAIJAN PROJECTS?
By his words, by this time two companies, which have founded the JC plan final agreeing the issue of selling of the LUKAgip. Tender on sales have been conducted, "however, some issues to be agreed have remained", - Mr. V. Alekperov has said.
The French Total S.A. , the German concern BASF AG and Turkish Turkey Petroleum Corp display their interests to purchasing the JC. However, "LUKoil" may purchase the Italian share itself.
The SOCAR has interest in this issue as LUKAgip operates in two Azerbaijan projects - on development of the offshore gas condensate field "Shakh-Deniz" and rehabilitation of onshore fields "Zikh-Govsani".
As Mr. Natiq Aliyev, the President of the SOCAR, which has 50% of sharing in the contract "Zikh-Govsani, he does not welcomes the increase of "LUKoil" share in the project "Zikh-Govsani", because this will bring to changes in other conditions of the contract. By the words of Mr. Natiq Aliyev, the sides achieved the similar agreement in 2003 on contract area "D-22" /Yalama/ on th Caspian shelf, when the SOCAR gave to "LUKoil" a half of its 40% of its share in this project.
The SOCAR and "LUKoil" signed the agreement on this project "Zikh-Govsani" on January 2001 during the first official visit of the President of Russia Mr. Vladimir Putin. For the Present the sides have 50% sharing in this agreement.
The fields "Zikh" and "Govsani" were put into operation in 30 - 40 years of the past century. Now 15 wells operate there, which produce 250 tons of oil per diem. By the estimations of the experts their remained supplies have 26 MM tons of oil.
However, if the sides are able to agree in some way on this project, it will be very difficult for them to agree in the issue of "Shakh-Deniz". On this field LUKAgip has 10% sharing, supplies and consequently future profits from production of gas and condensate are incomparably higher. What will "LUKoil" and other shareholders of the project "Shakh-Deniz" will do in this case is unknown for the present.
PRICES FOR OIL CONTINUE FIXING RECORDS
As the agency Bloomberg notes, the prices have continued their growth after explosions in Turkey, which is one of the most important oil routes to the Mediterranean market.
Experts interrogated by the RIA "Novosti" consider that fears on oil deficiency on market bring to the next growth in prices. In spite of numerous applications of the OPEC on intensions of increase of oil production and export, the participants of the market think that current volumes of deliveries to the market are insufficient.
The analysts and oil experts including officials of the OPEC consider that a cost of the black gold will not reduce for a long time. "If a regress emerges in the world economy, it would be possible to think that cheap oil has ended", - the Vice-President of Mitshui & Co Mr. Denis Congsiri has commented these events in such way.
"Causes of the growth are in political situation in the Middle East, prices for fuel and the USA and large oil demand in China", - the press secretary of the OPEC Mr. Abdulrakhaman Al-Kereiji has said.
"The Americans have accounted that Iraq will restore its production quickly, however it has not occurred and now the country produces in two times less than before invasion of the American troops", - the Department Chief of LUKoil on relations with investors Mr. Gennadi Krasovski has said. He has noted that energy resources demands grows meanwhile world commercial oil supplies are minimal: production grows and long since the fields of the world class has not been discovered.
The high oil demands of China may be dangerous factor for the market, the President of Cambridge Energy Research Associates Mr. Daniel Ergin thinks. "China has become one of the deciding and unpredicted players on the world oil market as rapidly growing economy of the country shows sharp vibration of oil demand", - Mr. Ergin notes. In the past year the CPR left behind Japan and became the second oil consumer in the world after the USA.
THE AUTHORITIES OF AZERBAIJAN REQUEST THE USA TO INCLUDE THE COUNTRY INTO THE PROGRAM "MILLENIUM CHALLENGE ACCOUNT"
"We have put a question to the government of the USA on including of Azerbaijan into the program Millenium Challenge Account. I think that the American side will take into account this offer and Azerbaijan will be included to the group of countries, provided by this program", - Mr. A. Alekperov has said.
The Minister has reminded this program is estimated in $5 bn and is accounted by 16 countries and Armenia and Georgia are among them. "For the present it has not been determined in what way this program may include Azerbaijan", - he has noted.
By the words of Mr. A. Alekperov, Azerbaijan corresponds to all parameters provided by the American side for the participants of the program. The USA will send the finance assistance to these developing countries, which demonstrate that their authorities keep laws, and governments of them are not corrupted and keep political rights, - the Minister has said.
Moreover, the program demands efforts of the governments directed for maintenance of education and health as well as economic rights - open market, transparent tax and currency policy, assistance to the private sector, "Interfax - Azerbaijan" informs.
"THE ROUND TABLE" ON THE PROBLEM OF NAGORNI KARABAKH WILL BE HELD IN MOSCOW
As the agency Regnum reminds, the first "round table" on the problem of Nagorni Karabakh was conducted by the same organizations on April of the past year. Then public figures, policy experts, former diplomats, religious officials, representatives of the Azerbaijan and Armenian communities in Russia (officials, representatives of embassies and press were not invited to it to not lock speakers in their estimations and offers). The participants of the future meeting should not return to telling about history and prehistory of the conflict and main positions of the sides, which are considered known enough during the discussion for concentration on predictions of the development of the situation and concrete offers in interests of adjustment of the conflict.
As a year ago the forum will be held in the building of the Foreign Political Association, head by Mr. A. A. Bessmertnikh, the former Foreign Minister of the USSR and the Chief of World Council of the Former Foreign Ministries. By the available information, a visit of well-known political experts, analysts, experienced diplomats from Baku and Yerevan is expected as well participation of officials of some international organizations. As well participation of some persons in their absence is provided.
Before the start of the discussion the presentation of the second issue of the monograph of Mr. Ali Abasov and Arutun Khachatryan "The Karabakh Conflict. Versions of Solution: Ideas and Reality", published by 10 years anniversary of the truce by the Moscow publisher's house "International Relations" with preface and comments of the former chief of the intermediary mission of Russia and co-chairman of the Minsk Group of the OSCE the Ambassador Mr. Vladimir Kazimirov.
THE AUTHORITIES OF THE GEORGIA HAVE STARTED PREPARATION FOR CONDUCTION OF SUMMIT MEETING OF GUUAM IN BATUMI
As the Chief of the Administration of the President of Georgia Mr. Irakli Chubinishvili has informed, a number of each delegation of the country-member of GUUAM, which will come to Batumi makes about 100 persons. "We accurately prepare for holding of this authorized forum. For Batumi this summit meeting will become a stimulus for the economic development, the town will receive certain earnings", - he has said.
Law - enforcement organs of Georgia work out a special plan of measures on ensuring security of participants of the forum. The presidents of Georgia, Ukraine and Azerbaijan will take part into it, an arrival of the President of Moldova is expected. As to the Uzbekistan, for the present it is unknown, who will head its delegation. Several days ago, Mr. Michail Saakashvili has said that "negotiations on participation of the delegation of Uzbekistan are conducted".
THE PRESIDENT OF AZERBAIJAN WILL CONDUCT THE NEGOTIATIONS WITH THE AUTHORITIES OF THE EUROPEAN UNION IN BRUSSELS
As the agency "Interfax-Azerbaijan" informs with a reference to the MFA of the republic, particularly, a perspective of including of Azerbaijan to the initiative of "Extended Europe" as well as a role of the EU in adjusting the Nagorni-Karabakh conflict.
The meetings of Mr I. Aliyev with the Chief of the European Commission M.r Romano Prodi, Commissar of the EU on Foreign Security and Policy Mr. Khavier Solana and other high-ranked officials of the EU.
THE CONSTRUCTION OF THE OFFSORE PLATFORM HAS BEEN COMPLETED IN THE SHALLOW AREA OF THE FIELD "GUNESHLI"
As the chief geologist of the IC "Azneft" Mr. Akif Narimanov has said, the drilling from the OSP-13 will start this week. 8 gas bore holes and 12 oil wells will be drilled from it. Expectedly 2.3 MM cubic meters of gas will be produced daily from the platform. Oil volumes are determined for the present.
Modules of the offshore stationary platforms returned from Astrakhan in 2001 have made a base of the platform. During 10 years they stood idle on the Astrakhan ship making plants for adjustment of property dispute between the RF and Azerbaijan. Before connecting modules to the OSP-13, restoration works should be prepared. The conditions of metallic construction were satisfactory, however there were problems on technological equipment. All power cables, management control panels and other check measuring equipment were removed from the modules. The industrial complex "Kaspmorneftegazstroy" was the contractor of the construction.
Before this the SOCAR has conducted the enlarging of the producing platform N14 in the shallow part of the field "Guneshli". It was supposed to drill 12 wells from this platform. This will allow to increase soon the daily volume of production on "Guneshli" from 16 up to 18 thou tons of oil.
65% of the Azerbaijan oil or 83% of sea oil of the country are produced in the shallow area of "Guneshli". The remained supplies of the shallow water part are estimated by 94 - 130 MM tons of oil and 75 bn cubic meters of gas.
THE SOCAR INTENDS TO STABILIZE OIL PRODUCTION IN 2004 - 2008
By his words, the five years program includes such trends as geophysics researches, production, drilling, geological exploration.
The President of the SOCAR has explained that at the present time a tendency for reduction of production volumes. "Our objective is maximal reducing this tendency including inner reserves of such fields and keep a level of production", - he has said and added that increase of volumes of production is possible only in account of development of new fields.
THE CORE STORAGE HAS BEEN OPENED IN BAKU
The question is about that earlier total core, which was collected from wells was lost in practice after relevant researches - collapsed, and sometimes was exported. First samples stored in the new storage were cores received at drilling on the fields of the SOCAR as well as offshore fields "Azeri-Chiraq-Guneshli" (ACG), developed by the international consortium. The relevant contract on this issue has been concluded for 20 years with the company BP-Azerbaijan, leading the development of ACG.
Core samples allow studying oil bearing structures of Azerbaijan, economizing means transferred to geological exploration, development and determination of the production level on the fields and perspective structures.
"Azlab" has spent $500 thou for the construction of the core storage: 15 thou meters of core may be stored in it as well as samples of gas and oil. Moreover, a laboratory for analyses of core has been built there.
By the words of the Chief Geologist of the IC "Azneft" Mr. Akif Narimanov, for all period of the operation of the SOCAR, 14.300 wells have been drilled. 1.03 MM meters of core were collected. And for the present only 1.974 thou meters or 0.15% of total volume produced on the offshore and onshore fields of Azerbaijan have been saved. This has occurred, because there were not normal conditions for core storing. As core became worthless for incorrect storing, it should be wasted.
Mr. A. Narimanov has noted tha the core storage corresponds to the world standards and all particularities were taken into account during the construction - temperature regime, dampness, conditions for preservation of core and studies. In the next time volumes of samples will increase up to 4 thou meters.
As to foundation of oil library, for the present about 300 samples of oil have been collected and this work continues. The analyses of all oils, their certification in paper and digital versions will be carried out. In future these data will become a base of databank of the SOCAR.
AZLAB has been founded in 1997 as the JC of closed type. Sharing in it looks as following: the industrial department of the SOCAR on offshore oil and gas production - 50%, the service company Schlumberger - 25% and the Turkish Oil Company TPAO - 25%.
ABOVE 5 THOU METERS HAVE BEEN PASSED ON THE THIRD ADVANCED WELL OF THE GAS CONDENSATE FIELD "SHAKH-DENIZ"
The well is drilled from the established bottom plate; shift from vertical here makes 2.3 km. Te given well is the most complicated of all advanced wells. The depth of sea makes about 101 m. The project depth of the well makes 6500 meters and approximately 165 days would be required.
This well completes the execution of the Program of the advanced drilling by the Stage-1 of the project "Shakh-Deniz".
Earlier the second advanced well SDA-02, which reached the depth of 65 - 40 meters was successfully completed. It sinking started on September 25 it will be drilled up to the North-East wing of the field. SDA-02 became the second inclined-directed well drilled on the field "Shakh-Deniz"; a shift from vertical by 1.8 km has been reached on it. The significant volume of core has been selected and scaled program of data selection was successfully executed. The using of special equipment allowed taking out core column by a total length of 174 m and receiving subsidiary information about quality and productivity of stratums.
By the words of the President of the project "Shakh-Deniz" Mr. Robe Kelly, "the successful completion of the second well has significantly enriched our drilling experience on the square "Shakh-Deniz" and total southern part of the Caspian Sea. The third well will give else one capacity of getting of the subsidiary drilling experience in complicated conditions as well as effective planning of future drilling operations from the platform TPG-500, which should be put into operation in the first half of 2006. We also plan to continue the estimation of lower part of the productive stratum".
"Stage-1" of the development of the gas condensate field "Shakh-Deniz" with a cost of $3.2 bn includes installing of the platform at a sea depth of 105 m, the construction of two underwater pipelines with a length of 100 km of each from the platform towards to the Sangachal terminal as well the construction of the South-Caucasian gas pipeline Baku - Tbilisi - Erzurum. The production of the primary gas from the field "Shakh-Deniz" is planned by the mid of 2006.
The "Stage-1" of the development of the field provides the production of 178 bn cubic meters of gas and 34 MM tons of condensate. The maximum production will make 8.4 bn cubic meters of gas and 2 MM tons of the condensate per a year.
BP (25.5%), Statoil (25.5%), the SOCAR(10%), LUKAgip(10%), OIEC (10%), TotalFinalElf (10%) and TRAO (9%) are the participants of the project "Shakh-Deniz".
THE FOURTH EXPLORATION BORE HOLE WILL BE DRILLED ON THE FIELD
As Media-Press has been informed in the State Oil Company of Azerbaijan (SOCAR), the fourth well will be drilled on the south-west wing of "Shakh-Deniz" and as specialists believe it will allow increasing explored supplies in one and half times.
By the words, officials of the SOCAR have thought always that revaluation of supplies of "Shakh-Deniz" is possible only after conduction of the exploration drilling in the southwest wing of the field. Now all operations are conducted only in the northeast wing.
We shall remind that on the largest gas condensate field in the Azerbaijan sector of the Caspian Sea thee exploration wells were drilled and by estimations of experts, the supplies of "Shakh-Deniz" make about 700 MM cubic meters of gas and about 200 MM tons of gas condensate.
The production of the primary gas from the field "Shakh-Deniz" is planned by the mid of 2006.
The "Stage-1" of the development of the field provides the production of 178 bn cubic meters of gas and 34 MM tons of condensate. The maximum production will make 8.4 bn cubic meters of gas and 2 MM tons of the condensate per a year. About 16 bn cubic meters of gas should be produced supposedly in the next stages of the development.
BP (25.5%), Statoil (25.5%), the SOCAR(10%), LUKAgip(10%), OIEC (10%), TotalFinalElf (10%) and TRAO (9%) are the participants of the project "Shakh-Deniz". The supplies of the field "Shakh-Deniz" make approximately 1trln cubic meters by estimations.
THE AZERBAIJAN GAS DELIVERIES TO GREECE WILL BE POSSIBLE ALREADY IN 2007
"On the first stage of the development of "Shakh-Deniz" we have agreement with Turkey on gas deliveries. If the Turkish market is not able to receive all agreed volume we shall have a right to deliver it to Greece", - Mr. Natiq Aliyev has explained. Supposedly, by 2007 the construction of the gas pipeline between Turkey and Greece by a length of 300 km should be completed in accordance with the agreement signed between these countries.
At the same time Mr. N. Aliyev has added that most probably gas deliveries will be possible only on the second stage of the development of the field. By his words, it is supposed that initially Greece will purchase about 1 bn cubic meters of gas per annum.
The contract on the development of the field "Shakh-Deniz" has been signed in 1996. BP (operator - 25,5%), Statoil (25,5%), ÃÍÊÀÐ (10%), LUKAgip (10%), OIEC (10%), TotalFinaElf (10%) and TPAO (9%) are the shareholders of the project. The production of the first oil should take place in the mid of 2006.
THE PRESIDENT OF BP-AZERBAIJAN: THE PIPELINE BAKU - TBILISI - CEYHAN IS PROFITABLE WITHOUT THE KAZAKHSTAN OIL
Mr. D. Woodward has noted that the oil transportation from the field "Kashagan" will start after putting of it into operation in 2007 - 2008. "At the present time the negotiations between Azerbaijan and Kazakhstan are continued on agreeing the intergovernmental agreement, which would promote to delivery of the Kashagan oil to Azerbaijan for transportation by BTC", - he has said. He has emphasized at the same time the pipeline Baku - Tbilisi - Ceyhan is "profitable without the Kazakhstan oil".
We shall remind that 4 companies sharing in the development of the Kazakhstan field "Kashagan" - the Italian ENI, French Total S. A., the American ConocoPhilips and Japanese Inpex, which have 15% total sharing in the company BTC Co (the operator of the construction and operation of the pipeline) share as well in the project of the construction of the pipeline Baku - Tbilisi - Ceyhan.
As Mr. D. Woodward has noted, there is an agreement on transportation of oil by BTC from the contract block of the fields "Azeri - Chiraq - Guneshli" and condensate from the field "Shakh-Deniz". As well a possibility of pumping of oil from the fields being developed by the SOCAR is not excluded.
Speaking about the construction of the pipeline BTC Mr. D. Woodward has told that in total the works go in accordance with schedule. In Azerbaijan 2/3 of all pipes have been welded by the present time, the same quantity in Georgia and slightly more than a half in Turkey. Moreover, for the timely completion of the construction works on the Turkish piece of the oil pipeline (nearer to the frontier with Georgia) the additional front of works has been opened.
The length of the MEP makes 1767 km and 443 of them pass through the territory of Azerbaijan, 248 km - through the territory of Georgia, 1076 km - through the territory of Turkey. The capacity of the pipeline makes 50 MM tons of oil in a year.
The construction works started on April 2003 and will be completed in the fourth quarter of 2004. The Azerbaijan oil export from the port Ceyhan (Turkey) is planned by the second quarter 2005.
BP (30,1%), the SOCAR (25%), Unocal (8,9%), Statoil (8,71%), TPAO (6,53%), ENI (5%), Itochu (3,4%), ConocoPhillips (2,5%), INPEX (2,5%), TotalFinaElf (5%) and Amerada Hess (2,36%) are the shareholders of the project.
