BP, SOCAR mull maintaining profitability amidst lowering oil prices
By Ayya Lmhammad
BP and the Azerbaijani authorities, including the State Oil Company of Azerbaijan (SOCAR) are discussing ways to maintain profitability under various scenarios of low oil prices, BP's Vice President for Public Relations, External Affairs and Strategic Issues in Azerbaijan, Georgia and Turkey Bakhtiyar Aslanbeyli has told local media.
"We are seriously studying our own cost portfolio in various areas, primarily in oil and gas production and drilling. We are discussing with the government of Azerbaijan and SOCAR the necessary steps to maintain profitability under various scenarios of low oil prices," Aslanbeyli said in an interview with Azerbaijani TV channel ARB.
It was stressed that the main priority for BP in Azerbaijan are the projects of development of the Azeri-Chirag-Guneshli (ACG) and Shah Deniz fields block.
"Fulfillment of commitments undertaken to preserve oil production in ACG block within the framework of the annual work program is our main priority. This project is the crown of energy projects in Azerbaijan, which directly affects the state revenues. The same refers to the Shah Deniz project, in which large investments have been made to increase production from this field. Regarding our other projects, the question is whether to start their realization immediately or later. We are holding consultations with SOCAR in this regard," Aslanbeyli said.
He also pointed that the construction project of the petrochemical complex “Mercury” in Turkey has been postponed until the first quarter of 2021.
"In the first quarter of next year, we will consider the profitability of this project and the feasibility of investment," said the vice president. Earlier it was reported that the construction of the complex was planned to start in 2020 in order to be put into operation in 2023-2025 due to low oil price corridor of $20-30 per barrel, as was stated earlier by SOCAR Turkiye Enerji head Zaur Gahramanov.
BP is a main shareholder of Azeri-Chirag-Guneshli (with 35.78% of shares) and Shah Deniz (with 25.5% of shares) fields. It is also shareholder of Baku-Tbilisi-Ceyhan and South Caucasus pipeline projects, project on exploration and development of shallow waters of Absheron archipelago, D-230 block and Shafag- Asiman structure in Azerbaijani sector of the Caspian Sea.
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