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SOCAR's oil reserves increase in 2019

26 September 2019 20:42 (UTC+04:00)
SOCAR's oil reserves increase in 2019

By Rasana Gasimova

The State Oil Company of the Azerbaijan Republic (SOCAR) has issued its “Annual Report on Sustainable Development” for 2018. The report reflects economic, social and environmental outcomes of SOCAR for the reporting year.

According to the report, as of January 1, 2018, the volume of confirmed oil reserves of the State Oil Company was estimated at 70.164 million tons, and gas reserves were estimated at 51.485 billion m3. The confirmed oil reserves of SOCAR at the beginning of 2019 are estimated at 71.055 million tons. The company’s gas reserves are estimated at 45.692 billion m3.

Thus, as of January 1, 2019, SOCAR's oil reserves increased by 1.3%, and gas reserves decreased by 11.3%.

The report that has ben published in SOCAR's official website, shows that in 2018, the company produced 7 million 542,300 tons of oil (a 1.6% increase compared to 2017), and 6 billion 525.6 million m3 of gas (a 7.2% increase). During the reporting year, the company sent 6 million 90,500 tons of oil (a 4.7% increase) and 2 billion 952.2 million m3 of gas for processing (a 1.2% increase).

The report also says that 2 billion 899.97 million m3 of cleaned gas, 5.29 million m3 of technical butane and 0.03 million m3 of gas petrol were processed of the 2 billion 952.19 million m3 of natural gas processed in 2018.

SOCAR wants to achieve a reduction in emissions of associated gas from the base level to about 64.9%. It is noted that according to the "Plan to reduce associated gas emissions in projects involving SOCAR and SOCAR for 2017-2022," in 2022 the goal was set to achieve a reduction in gas emissions by 64.9%.

During the reporting year, 6 million 258,100 tons of raw materials were processed, including 6 million 95,800 tons of oil and 162,300 tons of imported raw materials. Natural oil processing was fulfilled by 103.1%, and total raw material processing - by 105.4%. Total raw material processing increased by 328,500 tons (5.2%) compared to the results of 2017.

According to the report, the company's gas production reached 6 billion 266.8 million m3 in 2016, 6 billion 89.1 million m3 in 2017, and 6 billion 525.6 million cubic meters in 2018.

SOCAR exported 1 million 532,960 tons of petrol, diesel fuel and other products in 2018.

In general, in 2019, 65 wells began operations at the offshore and onshore fields developed by the company, and 94 wells were transferred from the idling well stock to the producing one after the workover was made.

SOCAR is the sole producer of petroleum products in Azerbaijan, owning over 370 filling stations in Georgia, Ukraine, Romania and Switzerland.

Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR. The company has a significant position in a number of regional and international energy projects.

Generally, SOCAR is one of the world's 50 largest oil companies. Its mission is to ensure the energy security of Azerbaijan. Established in 1992, SOCAR aimed at managing Azerbaijan's oil resources on the basis of a single state policy, to improve the management structure of the oil industry and to ensure the development of fuel and energy complex.

Last year, SOCAR’s total revenue amounted to 111.2 billion manats ($65.4 billion) with an increase of 20.1 percent compared to 2017. The total assets of SOCAR amounted to 62.1 billion manats ($36.5 billion) last year, and the total debt obligations - to 13.7 billion manats ($8 billion).


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