The Oil & Gas Year Azerbaijan 2015
Featuring interviews with the president of the state oil company SOCAR Rovnag Abdullayev, BP’s regional president and the director of the planned 1-million-tonnes-per-year Oil And Gas Processing And Petrochemical Complex TOGY’s second book on Azerbaijan is a fascinating resource for investors in this dynamic market.
At the core of Azerbaijan’s foreign policy is safe-guarding the country’s position as a major energy exporter. The president of the country, Ilham Aliyev, has strengthened relations with Western Europe and North America, as well as Russia, Iran and Turkey, with a focus on hydrocarbons. Furthermore, on the back of regional unrest, Azerbaijan is positioning itself to be an alternative supplier of natural gas to Europe.
Following a peak in oil production at just more than 1 million barrels of oil per day in 2009 and 2010, Azerbaijan’s oil output has since declined. However, a raft of major industry developments are progressing in 2015. With potential shale plays and offshore frontiers, the expansion of field developments and the bolstering of export infrastructure all falling into the domestic energy nexus, the country is seeking to maintain its hydrocarbons position on the international stage.
The advancing of onshore, offshore and shale resources in Azerbaijan offers promise to both diversify the market and create new opportunities for a highly competitive Azeri oilfield services sector. While household international names are present in the domestic market, the State Oil Company of the Azerbaijan Republic is making efforts to contract its own services providers, such as SOCAR-AQS and the Caspian Drilling Company.
Since 2006, the Shah Deniz field has produced 9 bcm (318 bcf) per year of gas. In 2013, the BP-led consortium that operates the field announced its final investment decision, clearing the way for a new phase of construction intended to increase production from the field and integrate it with the European energy market. First gas from the Shah Deniz Phase Two development is expected by 2018. The Oil & Gas Year Azerbaijan devotes its 2015 Year’s Focus chapter to the Phase Two development and is an indispensable guide to this critical market.