Tag Archives: Azerbaijan

BP cuts stuff number in Azerbaijan

FEB. 29 2016 (The Conway Bulletin) – British oil company BP laid off 8.5% of its staff in Azerbaijan in 2015, according to a report. The company said it employed 2,992 workers at the end of 2014. In 2015, this number shrunk by 257 people. BP has been hit by the fall in oil prices and is looking to reduce the cost of its operations overseas. Azerbaijan is one of its biggest areas of operations.

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(News report from Issue No. 270, published on March 4 2016)

BP and Topaz make Azerbaijan deal

MARCH 3 2016 (The Conway Bulletin) – Dubai-based oil service company Topaz Marine signed a deal with BP to supply 14 offshore vessels for its operations in Azerbaijan. The companies did not disclose the value of the deal, but Reuters calculated it to be worth around $541m.

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(News report from Issue No. 270, published on March 4 2016)

Turkcell submits bid for TeliaSonera’s Eurasian holdings

ALMATY, FEB. 26 2016, (The Conway Bulletin) — Turkcell, Turkey’s largest telecoms operator, said it had submitted a formal offer for TeliaSonera’s share in Fintur, a holding company that owns several stakes in telecoms operators across Central Asia and the South Caucasus.

TeliaSonera owns a 58.55% stake in Fintur. Turkcell owns the rest of the Netherlands-based company. Fintur, in turn, owns stakes in Azerbaijan Azercell, Georgia’s Geocell, Kazakhstan’s Kcell, Uzbekistan Ucell and Tajikistan’s Tcell.

If the sale goes through, the deal will reduce TeliaSonera’s exposure to the region. TeliaSonera will not, though, be able to walk away completely as the Swedish-Finnish company owns, directly and indirectly, 38% of Turkcell.

Other major Turkcell shareholders include Alfa Group and Cukurova Holding.

Many TeliaSonera shareholders had wanted the company to quit the region entirely after being accused of bribing senior officials in Uzbekistan for 3G licences nine years ago. The corruption investigation is ongoing.

In its statement, Turkcell also said it had submitted another offer for TeliaSonera’s directly owned 24% share in Kcell. If the two companies agree on the sale, Turkcell will own 75% in Kcell.

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(News report from Issue No. 270, published on March 4 2016)

Azerbaijan to sell electricity to Iran

FEB. 26 2016 (The Conway Bulletin) – Azerbaijan will start selling electricity to Iran by the end of March, media quoted its energy minister Shahin Mustafayev, as saying. The trade in electricity marks another step towards fully integrating Iran into the regional economy.

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(News report from Issue No. 270, published on March 4 2016)

Azerbaijan’s SOFAZ drops 10%

MARCH 1 2016 (The Conway Bulletin) – Assets held by SOFAZ, Azerbaijan’s state oil fund dropped by 9.5% in 2015 to $33.6b. SOFAZ earns cash from oil and gas sales and transit fees. It spends on various social projects and has also been buying up manat to support it against the US dollar. The drop in SOFAZ’s net worth reflects the economic downturn and slump in global oil prices.

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(News report from Issue No. 270, published on March 4 2016)

Azerbaijan’s ACG output drops

MARCH 2 2016 (The Conway Bulletin) – Output at BP’s Azeri-Chirag-Gunehsli (ACG) dropped in 2015 to 31.3m tonnes of oil, down from 31.5m tonnes of oil in 2014. The ACG field is Azerbaijan’s largest field and the bedrock of its oil output. Azerbaijan has been pressuring BP to maintain ACG output.

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(News report from Issue No. 270, published on March 4 2016)

Fitch cuts Azerbaijani credit ratings

FEB. 27 2016 (The Conway Bulletin) – The ratings agency Fitch cut Azerbaijan’s sovereign credit score to junk, following the other two main agencies’ lead, highlighting that it expects the Azerbaijani economy to shrink this year. Azerbaijan has been hit hard by the fall in global oil prices.

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(News report from Issue No. 270, published on March 4 2016)

Azerbaijan denies dodging Russian sanctions

MARCH 3 2016 (The Conway Bulletin) – Azerbaijan’s foreign ministry denied that the country was helping Turkey to dodge sanctions imposed by Russia by exporting its tomatoes to Russian cities. Russia had previously said that it was suspicious that the amount of tomatoes heading to Russian had increased by 350% this year. It threatened to retaliate if it proved the tomatoes had originated in Turkey.

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(News report from Issue No. 270, published on March 4 2016)

Iran and Azerbaijan swap oil

FEB. 26 2016 (The Conway Bulletin) – Iran and Azerbaijan will resume oil swaps after a five year break, Iran’s official Fars news agency reported quoting Iranian deputy oil minister Rokneddin Javadi. Azerbaijan will deliver oil to Iran’s Caspian Sea port of Neka to supply refineries in the north of the country. In return Iran will give Azerbaijan the equivalent amount of oil at its Persian Gulf ports.

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(News report from Issue No. 270, published on March 4 2016)

Construction work on TAP to start, says Azeri energy ministry

FEB 26 2016 (The Conway Bulletin) – Azeri energy minister Natig Aliyev said construction works will start later this month on the Trans-Adriatic Pipeline (TAP), the final section of the so-called Southern Gas Corridor that will pump gas from Azerbaijan to Europe.

According to Mr Aliyev, TAP is also expecting to secure financing by the end of April.

“The issues of TAP financing will be completely solved on April 28,” he said.

TAP, a 10b cubic metres pipeline which runs across Greece, Albania and the Adriatic Sea to Italy will link up with the 16b cubic metres Trans- Anatolian Pipeline at the border with Turkey.

BP, Azerbaijan’s state-owned SOCAR, Snam, Fluxys, Enagas and Axpo are all shareholders in TAP.

European customers see the Southern Gas Corridor an alternative to Russian gas supplies and the European Commission has lobbied intensely to ensure that the project is completed by the 2019 deadline.

This week a delegation of the European Commission participated in the second meeting of the Southern Gas Corridor Advisory Council.

Federica Mogherini, vice president of the European Commission, emphasised just how much weight the EU put on the project.

“The Southern Gas Corridor is an essential element in the EU’s Energy Security Strategy,” she said.

“We strongly support the Southern Gas Corridor, and we are determined – and me personally – to do our part to ensure that it is completed on time.”

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(News report from Issue No. 270, published on March 4 2016)