SOCAR turns into global transnational corporation
Azerbaijan’s state oil company SOCAR has turned into a global transnational corporation that has become competitive in foreign markets.
President of the company Rovnag Abdullayev made the remarks at the 25th International Caspian Oil & Gas Exhibition and Conference in Baku on May 30.
He noted that the signing of the contract for the development of the Azeri-Chirag-Gunashli (ACG) block of fields in 1994 became the main milestone that preceded these achievements of SOCAR.
“Since the beginning of the ACG development, Azerbaijan has received a net profit of more than $132 billion, from which it produced 446 million tons of oil, 91 billion cubic meters of gas and 23 million tons of condensate were extracted from another large Azerbaijani Shah Deniz field,” Abdullayev said.
The President of the State Company also spoke about the importance of launching the Southern Gas Corridor to strengthen the position of SOCAR.
“Phase 0 of the TANAP gas pipeline will be launched in June, and Phase 1 will be ready by the end of 2019. Europe is the most promising gas market, and in 2020, with the launch of the TAP gas pipeline, Azerbaijani gas will reach this market,” Abdullayev said.
During the event the Japan Oil, Gas and Metals National Corporation (JOGMEC) and SOCAR agreed to conduct joint seismic and geological research on prospective oil and gas blocks in Azerbaijan.
The memorandum was signed by SOCAR President Rovnag Abdullayev and JOGMEC President Tetsuhiro Hosono.
Japan expects to receive preferential rights for exploration in Azerbaijan, according to the memorandum. The document also provides for joint development of technologies.
Moreover, SOCAR and the Norwegian Equinor will sign two agreements as part of Conference, which envisage a 50/50 share distribution.
In particular, a risk-service agreement on the Karabakh field and a production sharing and exploration agreement on the Dan Ulduzu, Ashrafi and Aypara promising structures will be signed.
The contract for developing Ashrafi – Dan Ulduzu block of structures, signed in 1997 between SOCAR (20 percent), BP (30 percent), Unocal (25.5 percent), Itochu (20 percent) and Delta HESS (4.5 percent), lost validity on March 7, 2000. Hydrocarbon reserves in the amount of 20-40 million tons were discovered at the Ashrafi field.
Initial oil reserves of the Karabakh oil and gas field, discovered in 2000, amount to 100 million tons. SOCAR operates Karabakh field’s development.
SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.
SOCAR includes three production associations, one oil refining and gas processing enterprise, an oil flotilla, a deep-water base plant, two trusts, one institute, and 23 structures.
SOCAR established joint companies (including Georgia and Turkey), alliances, operating in various sectors of oil and gas spheres.
SOCAR has representative offices in Georgia, the U.S., Turkey, Romania, Austria, Switzerland, Kazakhstan, Great Britain, Iran, Germany, Ukraine, Belgium and Canada.
In total, in 2017 38.69 million tons of oil was produced in Azerbaijan, 7.42 million tons of which accounts for SOCAR.