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SOCAR, KEPCO prepare joint energy projects in Caspian Sea

28 September 2017 13:36 (UTC+04:00)
SOCAR, KEPCO prepare joint energy projects in Caspian Sea

By Sara Israfilbayova

Iran and Azerbaijan have discussed the joint exploration and development of the Caspian Sea oil and gas fields.

The talks were held in Baku between SOCAR's top officials, including company President Rovnag Abdullayev and a delegation from Khazar Exploration and Production Company (KEPCO), headed by managing director Mohsen Delaviz, the National Iranian Oil Company's (NIOC) reported on September 28.

Abdullayev stressed huge prospects for cooperation in the energy sector between Iran and Azerbaijan to help boost the two nation's economic development.

He further added that the two sides should do everything possible to jointly explore and develop the Caspian hydrocarbon resources.

The Caspian Sea region has immense scope for oil and gas exploration and production due to the presence of substantial undiscovered resources. The area is divided into four petroliferous (rocks containing petroleum) geologic provinces: the south Caspian basin, the middle Caspian basin, the north Caspian basin (pre-Caspian basin) and the north Ustyurt basin.

In 2003, the Energy Information Administration (EIA) estimated the Caspian basin area to hold 48 billion barrels (bn bls) of oil and 292 trillion cubic feet (tcf) of natural gas in proved and probable reserves.

Delaviz, in turn, said that the terms of exploration and development in the region's oil and gas fields, sharing the latest technologies in the oil and gas industry and joint analysis of seismic data for exploring deep underwater hydrocarbon resources were among the key issues discussed in the meeting.

Reminding a preliminary agreement signed between SOCAR and NIOC in 2015, Delaviz said there is plenty of scope for bilateral collaboration in the energy sector.

Earlier, in June 2017, NIOC has announced the list of companies that can participate in the tender for the development of Iranian deposits.

The list consists of 34 companies, including SOCAR, Russian Gazprom Neft, Rosneft, Tatneft and Zarubezhneft.

NIOC, with a vast amount of oil and gas resources, is one of the world’s largest oil companies. At the present time, it is estimated that the company holds 156.53 billion barrels of liquid hydrocarbons and 33.79 trillion cubic meters of natural gas.

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.

Azerbaijan's energy giant SOCAR, which includes production associations Azerneft, made up of companies involved in the production of onshore and offshore oil and gas, Azerkimya, chemical industry enterprises, and Azeriqaz gas distribution, 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 the industries and public in Azerbaijan.

Iran and Azerbaijan enjoy developed political, economic, cultural and humanitarian relations, have signed some 50 documents on cooperation. Currently, some 450 companies with Iranian capital operate in the country.

Azerbaijan and Iran will soon launch joint manufacture of cars in the in Neftchala Industrial District. The plant will operate on the basis of joint project of AzEuroCar LLC and Iran’s largest car manufacturer Iran Khodro.

Also, a join pharma plant is under construction in the Pirallahi Industrial Park.

The trade turnover between Iran and Azerbaijan amounted to $148.9 million in January-July 2017 (an increase of 42.3 percent over the year), almost $140 million of which accounted for imports from Iran, according to State Customs Committee of Azerbaijan.

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