Major events in Caspian countries' oil and gas industry

Azerbaijan and Italy discuss prospects of cooperation in energy sector

Azerbaijan and Italy discuss prospects of cooperation in energy sector

A meeting between representatives of SOCAR's management and the delegation headed by Deputy Minister for Economic Development of Italy Claudio De Vichentis was held at the State Oil Company of Azerbaijan (SOCAR). Talks about the prospects of energy cooperation between the two countries, a comprehensive exchange of views on Southern Gas Corridor project of the EU and Italy's activity on the implementation of the project were held during the meeting. Ambassador Extraordinary and Plenipotentiary of Italy to Azerbaijan and representatives of the Edison Company's management participated in the meeting.

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SOCAR successfully places Eurobond issue

The State Oil Company of Azerbaijan Republic (SOCAR) successfully placed in London debut Eurobond issue. Placement of Eurobond aroused great interest among investors. The total volume of orders submitted by 290 investors amounted to $4.6 billion. The total amount of issued Eurobonds is $ 500 million and their yield will hit 5.45 per cent per annum. The maturity date of the primary Eurobond issue is set for February 9, 2017. Eurobonds are issued on the basis of the "Regulation S" of the Securities Act of the United States. Eurobonds have been assigned ratings of BBB- by Fitch and BA1 by Moody's. Long-term corporate rating of SOCAR was defined by Fitch as a BBB-("stable" outlook), by S & P as a BB + ("stable" outlook) and by Moody's BA1 ("stable" outlook.). The Royal Bank of Scotland (RBS), Citi Bank, and Deutsche Bank are general managers of Eurobonds issue. Nomura International Plc. and Société Générale SA are the joint managers, the investors' representative is the Deutsche Trustee Company Limited. The main agent for payments and transfers is Deutsche Bank AG (London Branch). Eurobonds were placed among the investors of England (46 per cent), Europe (38 per cent), the United States' offshores (12 per cent) and Asia (4 per cent). As a result of placement, 63 per cent of the Eurobonds were purchased by equity participants, 16 per cent - by banks, 11 per cent - by insurance companies and pension funds, and 10 per cent - by hedge funds.
Cold snap halves Turkmen gas export to Iran

Turkmenistan has halved gas export to Iran via Dovlatabad-Sarakhs pipeline, Mehr news agency reported. Turkmenistan has reduced its natural gas exports to Iran due to the harsh cold weather in the Central Asia, the National Iranian Gas Company (NIGC) managing director Javad Odji. Despite the cut in natural gas imports and the cold winter, no disruption in gas supply has so far been reported nationwide. Turkmengaz Company has halved its gas exports to Iran without any prior notice to some 10 million cubic meters, sources told Mehr news agency, warning that the exports may even be declined further later on.
Aviation fuel levels critical in Kazakhstan

Kazakhstan is facing a critical situation in terms of securing aviation fuel, the President of JSC Air Astana Peter Foster said at a board meeting at the Ministry of Transport and Communications. "The situation with aviation fuel is critical at the moment. Kazakhstan refineries do not produce enough volume not only for Air Astana, but also for other airlines that fly from Kazakhstan. It is expected that at least 25 percent of these needs will be met from Russia," Mr Foster said. He also noted that the Russian Federation has introduced some restrictions on the export of fuel.
Tethys, Uzbekneftegaz oil and gas companies sign Memorandum of Understanding

British-Canadian Tethys Petroleum Limited and Uzbek State oil and gas company Uzbekneftegaz signed a Memorandum of Understanding on Feb.1, aimed at providing the framework for a Joint Study and the negotiation process for an Exploration Agreement relating to certain exploration blocks in the North Ustyurt Basin of Uzbekistan. It was reported earlier that Uzbekneftegaz and Tethys Petroleum Limited signed a memorandum of understanding in November, 2011, providing for new contracts to increase the production rate in two oil fields - Chegara and West Kruk in Uzbekistan. Tethys Petroleum Limited is an oil and gas exploration and production company currently focused on Central Asia with projects in oil-rich Kazakhstan, Tajikistan and Uzbekistan.
Gazprom completes geological exploration in Ustyurt region of Uzbekistan

Gazprom International Company has completed the geological exploration in Ustyurt region of Uzbekistan. The program, designed for five years, was adopted in 2006 and included three stages. Geological and geophysical surveys and drilling of prospect and exploration wells were carried out during the first two stages. The Gelle condensate field, located at 235 kilometers from the main gas pipeline Central Asia - Center was opened during the implementation of the third and final phase on the Shahpahtinsk (Karakalpakstan, Uzbekistan, north-west) investment block. The company is currently preparing a report on the calculation of natural gas and gas condensate on Gelle field for subsequent protection of the State Commission for Reserves under the Cabinet of Ministers of Uzbekistan.
Georgia sets volume of Azerbaijani gas purchases for 2012

The Georgian government has approved the gas balance for 2012. The licensee independently makes a decision to replace a country supplying gas in accordance with the order of the Minister of Energy and Natural Resources. This year, Georgia will receive 1.5 billion cubic meters of gas. About 1.3 billion cubic meters of the volume will be obtained from Azerbaijan, and 211 million from Russia. About 12,000 cubic meters of gas will be extracted from Georgia.