The Oil & Gas Year Azerbaijan 2016
The 2016 edition features interviews from SOCAR president Rovnag Abdullayev, SOCAR vice-president Tofiq Gahramanov, SOCAR Polymer general manager Farid Jafarov and Gordon Birrell, regional vice-president of BP. TOGY’s third edition on Azerbaijan offers detailed insight into the current state of the market, with superb maps, infographics and editorial content culled directly from top executives in the industry.
This year’s focus is on petrochemicals, which have come to the forefront of Azerbaijan’s energy policy. For more than a decade, Azerbaijan’s upstream sector was booming and the production levels of oil and gas soared. During this lucrative period, SOCAR set out to develop the country’s downstream sector, which in the current climate of oil and gas price lows will help in the long term to float the hydrocarbons industry, as well as offer greater diversification to hydrocarbons industry.
Azerbaijan’s 2006 pipeline projects to extract greater value from the country’s hydrocarbons deposits and increase exports boosted the economy. The new 2015 construction, the Southern Gas Corridor, is expected to maximise the returns from reserves. The scale and scope of the project, however, as well as Azerbaijan’s growing domestic needs, could affect and stall the expansion plans for the exports infrastructure.
Ongoing oilfield services projects have kept the industry afloat, especially with the presence of BP and its development of the Shah Deniz field, and SOCAR’s well-drilling projects. Rig construction in the Caspian Sea and the potential development of the Azeri-Chirag-Guneshli field are positive for the industry, but for service providers only those that have secured work with the supers are likely to last.