Azernews.Az

By Aynur Jafarova

Azerbaijan's state energy company SOCAR, which is keen on expanding operations in the retail oil products market abroad, held an event summing up the year of 2013 on December 28.

Speaking at the event SOCAR head Rovnag Abdullayev said Azerbaijan produced 43.5 million tons of oil and 29.5 billion cubic meters of gas in 2013.

SOCAR produced 8.34 million tons of oil and 7.15 billion cubic meters of gas.

Abdullayev also said SOCAR's total investment volume in Turkey will reach $17 billion given all projects implemented in this country.

He noted the projects of construction of the Trans-Anatolian gas pipeline (TANAP), new Star refinery in Izmir, Petkim container port and power stations.

"The company also continues working to implement projects in other countries," he said. "In particular, the process of re-branding petrol stations has been completed in Switzerland. SOCAR intends to intensify its efforts to become a leader in the Swiss market."

Abdullayev also said SOCAR plans to sign an agreement on the joint operation of the gas stations with Migros Company in Switzerland under the SOCAR brand in January 2014.

Currently the stores of Migros Company operate in SOCAR gas stations in Switzerland. The revenues from the stores and gas stations will be distributed between the companies, he stressed.

The conclusion of the agreement will expand the SOCAR brand in Switzerland, have a positive impact on the company's earnings and make it the leader in retail sales of petroleum products in the market.

Over 160 gas filling stations under the SOCAR brand operate in Switzerland today.

SOCAR head went on to say that the level of gasification in Azerbaijan will reach 99 percent by 2015.

He noted the level of gasification has already reached 90 percent.

Later, Abdullayev told journalists that increase in fuel prices during the transition of Azerbaijan to Euro-3 environmental emissions standards is not expected.

He said the next year the company will focus on repairing and expanding the power of the catalytic cracking installation, in order to meet the country's growing needs in gasoline in the next few years.

"The level of gasoline consumption in the country has already become equal with its production volumes," Abdullayev said.

He also did not rule out the possibility of gasoline imports from abroad in the future in case of necessity.

The quality of the fuel produced in Azerbaijan is expected to be brought up to Euro-3 standard by late 2014. Currently, the Euro-3 standard applies to vehicles and their spare parts in Azerbaijan, as well as to the fuel produced in the country.

Abdullayev also said SOCAR intends to supply about 1.5 billion cubic meters of gas under a contract with the Russian Gazprom in 2013.

Referring to the possibility of increasing the supply to three billion cubic meters, Abdullayev said this would be impossible due to increased gas injection into the reservoir at the Azeri-Chirag-Gunashli block of fields.

The volumes of supplies may be increased at the expense of gas from the fields of Umid, Bulla Deniz and others in the future, Abdullayev stressed.