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Trans Adriatic Pipeline selected to transport Azerbaijani gas to Europe

The Trans Adriatic Pipeline (TAP) has been selected by the consortium for the development of the Azerbaijani gas condensate field Shah Deniz as the route to transport its gas to European markets. This was officially announced in Baku on June 28.

SOCAR announces investment amount to ensure Azerbaijani gas export to Europe

Some $ 40 billion envisaged for gas export from the Azerbaijani Shah Deniz gas condensate field do not include the costs for the construction of the Trans-Adriatic gas pipeline, a SOCAR senior representative said.

In particular, some $ 25 billion are envisaged for holding the offshore operations on Shah Deniz, $8-9 billion - for the construction of Trans-Anatolian gas pipeline (TANAP), as well as the funds are required to expand the South Caucasus gas pipeline.

"It is still early to talk about the final figures, as the work is underway to reduce these costs," the representative said. "The total costs can be reduced as a result of the efforts of the consortium or increased due to unexpected expenses, inflation and other factors."

Ahmadinejad inaugurates gasoline production units at Lavan refinery in Iran

Iranian president Mahmoud Ahmadinejad has inaugurated 14 gasoline production units at Lavan refinery in Iran, Fars news agency reported.

Gasoline, diesel oil, and jet fuel production units were commissioned.

The projects came on stream at the cost of 6.5 trillion rials (some $530 million based on the official 12,260 rial to USD rate).

10-million-ton of oil extracted from LUKOIL project in Kazakhstan

"Kazakh Oil Aktobe", stated that 10-million-tons of oil have been produced since Alibekmola and Kozhasai fields were first exploited, "Lukoil Overseas Service BV" said.

Shareholders of KazakhOil Aktobe are the National Company KazMunaiGas (50 percent), LUKOIL (25 percent) and China's Sinopec (25 percent). The company is developing Alibekmola and Kozhasai oil and gas fields, located in the Mugalzhar region, Aktobe area (north-west of Kazakhstan), 270 kilometers from the Aktobe regional center.

The total hydrocarbon reserves in Alibekmola and Kozhasaya exceed 60 million tons.

Cost of each subsequent phase of development of Kashagan field in Kazakhstan is announced

The cost of each subsequent phase of the Kashagan in Kazakhstan, according to preliminary estimates will be about $ 20 billion, a source from the oil and gas sector said.

"However, this is not the final figure since the mistakes of first stages to be considered and, therefore, will be used, for example, new methods of building of the artificial islands, which naturally lead to a rise in the cost of the project," the source said.

According to the source, the cost of the first phase of the Kashagan - the industrial phase of development - according to the official figures amounted to 46 billion dollars. After the completion of the first phase, he said, there should be followed four more stages to reach the peak of oil production.

Details of ConocoPhillips-Kashagan deal with China announced

Kazakhstan intends to buy the U.S. company Conoco Phillips's share in the Kashagan project, but plans to sell half to China, a source in oil and gas circles said.

"Kazakhstan will acquire the U.S. company Conoco Phillips's share in the Kashagan project amounting to 8.4 percent, but it will sell 8.4 percent to China of its share worth 16.81 percent. As a result, China will get a share worth 8.4 percent and Kazakhstan will retain its 16.81 percent."

Fitch Affirms Kazakhstan's KazMunayGaz at 'BBB'

Fitch Ratings has affirmed JSC National Company KazMunayGas' in Kazakhstan (NC KMG) Long-term foreign currency Issuer Default Rating (IDR) at 'BBB' with a Stable Outlook. Fitch has also affirmed KazMunaiGaz Finance Sub B.V.'s foreign currency senior unsecured rating at 'BBB'.

Lukoil, KazMunaiGas negotiate on two new exploration blocks in Kazakh sector of Caspian Sea

Russian Lukoil is in talks with the government of Kazakhstan for the exploration and investigation of two new blocks in the Kazakh sector of the Caspian Sea along with NC KazMunaiGas JSC (KMG), KMG Deputy Chairman for Geology and Perspective Projects Kurmangazi Iskaziev said.

According to him it is about the two offshore blocks of Okzhetpes and 2P2.

According to him, following negotiations between KMG and Lukoil, the partners intend to apply to the necessary authority to obtain mining rights for two offshore blocks.