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SOCAR’s daughter company decided to try development of hydrocarbons on south of Russia

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SOCAR Rus, daughter company of State Oil Company of Azerbaijan (SOCAR), has been working on the program to study hydrocarbon field in Astrakhan district in Russia, said Sergei Krzhanovski, Minister of Industry, Transport and Natural Resources of Astrakhan district.

            In December 2013 SOCAR Rus obtained a license to explore and evaluate hydrocarbon field on the north of Beshkul section. The field is located in Narimanov region, reported Interfax-South.

            If the prospecting works are successful, the company plans to start field development. Beshkul oil field, which is at the stage of development, is located to the south of SOCAR Rus licensed section. Russian RITEC company is involved in that and Astrakhan gas condensate field is located to the northeast.

            As a part of the licensed agreement, SOCAR Rus will implement the program, which must be approved till December 1, 2014. I think till the end of the year we will know the company’s plans, Krzhanovski said.

            According to the local Ministry, 4.7 trillion cub.m. of gas and 1,037,000 tons of liquid hydrocarbons, including gas condensate and oil, are on the state balance in Astrakhan district.

            SOCAR has already applied for the license to search for oil and gas on the south of Russia. In spring 2013 it took part at the auction of the Russian Ministry of Bowels of Earth for the right to use bowels of earth of the Caspian section located in Kalmykia. However, the auction has failed to take place, because SOCAR Rus was the only pretender for the license. The company will, possibly, continue its efforts and take part at the repeated auction.

            According to the estimates of Shell, Tatneft and LUKoil operating in Kalmykia, this area could possess significant hydrocarbon resources lying on the depth over 5000 meters. Oil production in the republic allows transporting it with low costs via the Makhachkala port or by tankers in Baku for further pumping via the Baku-Tbilisi-Ceyhan oil pipeline. The Caspian section in Kalmykia, to which SOCAR Rus pretended, is 100.4 sq.km. and the resources of the field are estimated at 4.5 million tons of oil.

Specialists believe that SOCAR’s intention to break into the oil and gas markets outside of the country is a positive factor. In order to reduce the risks, it has chosen the most suitable conditions for that – neighboring country with the similar to itself oil and gas industry and operation onshore on the oil and gas bearing areas.

   SOCAR Rus company was registered in Moscow on May 6, 2013. It specialized in production of crude oil and natural gas and also provides services in these areas. General Director of the company is Jafarov Farid Iskandar oglu. 99% shares of the company are owned by SOCAR and 1% by the Russian citizen, physical person.

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