By Aynur Karimova
Azerbaijan's state energy company SOCAR and Uzbekistan's Uzbekneftegaz National Holding Company plan to establish a joint venture to introduce the energy-saving technologies in the Uzbek oil and gas industry in the first six months of 2016.
SOCAR and Uzbekneftegaz signed a memorandum of intent in November 2015, A representative of the Neftegazinvest Company (part of Uzbekneftegaz) told Trend on December 28.
"While signing the memorandum, the Uzbek side took into account that SOCAR has necessary expertise, equipment and technologies for this project implementation," the source said.
SOCAR will initially conduct the comprehensive energy audit of Uzbekneftegaz’s enterprises. Proceeding from the results of the energy audit, the sides will determine the parameters of the project during the negotiation process.
"We hope that the founding documents of the joint venture implementation will be signed in summer 2016," the source added.
Uzbekneftegaz plans to transfer up to $500 million to finance the energy-saving technologies by 2030. The energy saving potential is estimated at 2.5 billion cubic meters of natural gas annually while implementing these technologies.
Uzbekneftegaz’s capacity allows producing 70 billion cubic meters of natural gas and eight million tons of liquid hydrocarbons annually.
Azerbaijan's energy giant SOCAR, which is keen on expanding operations in the retail oil products market abroad is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.
SOCAR includes Azneft (companies producing oil and gas offshore and onshore), Azerkimya (chemical industry) and Azerigas production associations.
Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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