Thursday, June 16, 2016

Caspian Overview: China Eyes Growth in Azerbaijan

NATURAL GAS EUROPE -  June 02nd, 2016
China has held negotiations with Azerbaijan’s state oil company (Socar) over a $17bn downstream project twice in the last two months, this time leading to a memorandum of understanding.  China National Petroleum Corp (CNPC) has been involved in development of three Azerbaijani oil fields, Kursangi, Karabagli and Gobustan, based on production-sharing agreements (PSA) since 2002. It produces only around 200,000 metric tons/yr of oil and 8mn m³/yr of associated gas from these in total.  But the president of Socar, Rovnag Abdullaev, announced on May 31 that China's largest oil and gas producer and supplier CNPC was interested in participating in the Oil & Gas Processing and Petrochemical Complex (OGPPC) project.  He said after a meeting with the CNPC board member and deputy president Wang Shihong that CNPC is interested in taking part in a wide-range projects with Socar, without giving detailed information. The following day they signed an MoU on cooperation in upstream oil and gas and petrochemicals.  He had also said in March that a number of Chinese companies and Chinese Exim Bank had also shown interest in the OGPPC project.