Progress in en­ergy sec­tor na­tion­al­iza­tion noted

Azer News - - Front Page - By Narmina Mam­madova

Na­tion­al­iza­tion of the en­ergy sec­tor in Azer­bai­jan is cur­rently un­der­way.

An event on the strat­egy of na­tion­al­iz­ing the oil and gas in­dus­try was held in Baku on De­cem­ber 5.

The pres­i­dent of the state oil com­pany SOCAR, Rov­nag Ab­dul­layev, pointed out that the level of ful­fill­ment of obli­ga­tions by oil and gas com­pa­nies as part of the na­tion­al­iza­tion pro­gram in the en­ergy sec­tor of Azer­bai­jan is quite high.

“If five years ago at BP Ex­plo­ration, as well as at con­tract­ing com­pa­nies and sub­con­trac­tors, the na­tion­al­iza­tion rate was about 77 per­cent, by the end of 2018 the share of lo­cal per­son­nel in th­ese com­pa­nies reached 90 per­cent, ”Ab­dul­layev said.

Preser­va­tion of the na­ture and bi­o­log­i­cal di­ver­sity is one of the ba­sic pri­or­i­ties of the state pol­icy in Azer­bai­jan, while largescale state pro­grams di­rected to the im­prove­ment of the eco­log­i­cal sit­u­a­tion have been im­ple­mented dur­ing the past decade.

A sem­i­nar on ap­pli­ca­tion of the na­tional ac­tion plan for Azer­bai­jan was held in Baku on De­cem­ber 5.

The Azer­bai­jani state com­pany SOCAR is do­ing ev­ery­thing pos­si­ble to bring car­bon diox­ide emis­sions to a min­i­mum, SOCAR Vice Pres­i­dent for Ecol­ogy, Rafiga Huseynova, said dur­ing this sem­i­nar, Trend re­ported.

“The main source of car­bon diox­ide is the en­ergy sec­tor, and we are do­ing ev­ery­thing pos­si­ble to bring th­ese emis­sions to a min­i­mum,” the vice-pres­i­dent said, ad­ding that var­i­ous laws were passed in this di­rec­tion, and cor­re­spond­ing de­crees and or­ders were signed.

In par­tic­u­lar, ac­cord­ing to the vice-pres­i­dent, the most im­por­tant of them can be con­sid­ered the laws "On en­vi­ron­men­tal safety" and "On en­vi­ron­men­tal pro­tec­tion".

“Azer­bai­jan has taken im­por­tant steps in this di­rec­tion in a very short time and is par­tic­i­pat­ing in many global projects. SOCAR fol­lows the prin­ci­ple of "zero waste",” said Huseynova.

Fur­ther, the vice-pres­i­dent noted that in re­cent years, SOCAR has been in­volved in large-scale projects. So, since 2012, SOCAR has been im­ple­ment­ing a joint project with the World Bank, in which the as­so­ci­ated gas is col­lected from Oil Rocks.

"Ev­ery day about 1 mil­lion cu­bic me­ters of as­so­ci­ated gas is col­lected and pro­vided to the pop­u­la­tion," said Huseynova, stress­ing that this is a sig­nif­i­cant achieve­ment.

As part of an­other project jointly with the World Bank, in which BP also par­tic­i­pates, 1 mil­lion cu­bic me­ters of as­so­ci­ated gas is also be­ing col­lected at the Az­eri-Chi­ragGuneshli field.

In turn, Azer­bai­jani Deputy Min­is­ter of Ecol­ogy and Nat­u­ral Re­sources, Novruz Guliyev, noted that, de­spite the fact that Azer­bai­jan is a de­vel­op­ing coun­try, it has the po­ten­tial to put all plans and projects [to re­duce harm­ful emis­sions] to life.

The Deputy Min­is­ter noted the im­por­tance of the Paris Cli­mate Agree­ment, of which Azer­bai­jan is a party [the coun­try signed it in 2016 ], ad­ding that by im­ple­ment­ing the mea­sures con­sid­ered in this agree­ment, it will be pos­si­ble to re­duce car­bon diox­ide emis­sions into the at­mos­phere and thereby en­sure the health of fu­ture gen­er­a­tions.

By 2030, the Azer­bai­jani state oil com­pany SOCAR will re­duce CO2 emis­sions by 35 per­cent, Trend re­ports cit­ing UNDP Deputy Res­i­dent Rep­re­sen­ta­tive Alessan­dro Fra­cas­setti.

This is en­vis­aged in the ‘Na­tion­ally Ap­pro­pri­ate Mit­i­ga­tion Ac­tions’ (NAMA) project, he said at a work­shop in Baku.

The project has three key di­men­sions: in con­struc­tion de­sign, trans­port, and as­so­ci­ated gas cap­tur­ing, he added.

Fra­cas­setti stressed that the most am­bi­tious goal is the third goal - the col­lec­tion of as­so­ci­ated gas.

Dur­ing last year's re­search, it was re­vealed that as­so­ci­ated gas is greatly emit­ted into the air from Siyazan oil fields, he added.

There­fore, this project is im­por­tant, be­cause this as­so­ci­ated gas can be col­lected and sup­plied to res­i­dents, he said.

Fra­cas­setti stressed that he ap­pre­ci­ates the par­tic­i­pa­tion of SOCAR in the project.

Speak­ing about the global en­vi­ron­men­tal sit­u­a­tion, he stressed that if noth­ing is done, then by 2030, as a re­sult of global warm­ing, the av­er­age tem­per­a­ture in the world will in­crease by 1.5 de­grees.

This am­bi­tious plan could yield 65 mil­lion new jobs and a di­rect eco­nomic gain of $26 tril­lion com­pared to busi­ness as usual over the next 12 years, he said.

SOCAR re­duced car­bon diox­ide emis­sions within its projects to 5.891 mil­lion tons in 2017. Since 2010, emis­sions have been re­duced by 45 per­cent.

When flar­ing as­so­ci­ated gas, large vol­umes of car­bon diox­ide are emit­ted into the at­mos­phere. Ac­cord­ing to ex­pert es­ti­mates, 140 bil­lion cu­bic me­ters of as­so­ci­ated gas are burned an­nu­ally at oil fields all over the world, re­sult­ing in more than 300 mil­lion tons of car­bon diox­ide, which is equiv­a­lent to ex­haust emis­sions from about 77 mil­lion cars.

Ac­cord­ing to the Min­istry of Ecol­ogy and Nat­u­ral Re­sources, Azer­bai­jan's emis­sions to­tal 51 mil­lion tons per year, which is about 30 per­cent lower than in 1990. Azer­bai­jan hopes to re­duce this fig­ure by an­other 35 per­cent by 2030 as a con­tri­bu­tion to global ef­forts against cli­mate change.

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