Tag Archives: fuel

Azerbaijan’s Socar wants Turkey petrol stations

JAN. 23 2017 (The Conway Bulletin) — In an interview with the Turkish newspaper Sabah, Socar Turkey Energy director general Zaur Gahramanov said the company was committed to opening a chain of petrol stations throughout Turkey.

Socar is bidding to buy the 1,785 petrol stations belonging to Austria’s OMV in Turkey. Even if Socar’s bid fails it will look to buy up petrol stations in Turkey. Socar owns the Star Refinery in Izmir. The $6b refinery is due to start production in April 2018 and is Socar’s biggest overseas investment.

“The acquisition of OMV Petrol Ofisi is the most suitable option for Socar, but we have alternatives,” he said. “We can launch talks on the acquisition of another company or create a new network in Turkey.”

Socar owns a network of petrol stations in Georgia and has been looking to expand. The collapse in oil and gas prices since 2014 has forced Azerbaijan to change its focus to downstream products and services.

OMV bought the petrol stations between 2006 and 2010 for $2.5b. Aramco, Petromium-C consortium and Vitol are also bidding to buy the petrol station network.

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(News report from Issue No. 314, published on Jan. 27 2017)

Petrol prices rise in Azerbaijan

JAN. 13 2017 (The Conway Bulletin) — Azerbaijan’s state-owned oil and gas company, Socar, said that it was going to raise the price it charges consumers for high octane Super Euro 98 petrol to 1.05 manat per litre from 0.95 manat per litre. Azerbaijan imports Super Euro 98 petrol. The sliding value of the manat versus the US dollar means that the cost of imports has increased.

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(News report from Issue No. 313, published on Jan. 20 2017)

Azerbaijan’s energy company profits in Romania

JUNE 6 2016 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR said its Romanian subsidiary SOCAR Petroleum made a profit in 2015 for the first time since 2011 despite a fall in revenues. SOCAR Petroleum owns several filling stations across Romania. Low oil prices reduced total revenue at SOCAR Petroleum but also gave it a higher profit margin on sales.

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(News report from Issue No. 284, published on June 10 2016)

Azerbaijan’s SOCAR plans expansion

APRIL 15 2016 (The Conway Bulletin) – Azerbaijan’s state-owned energy company SOCAR said it is eyeing expansion in both Ukraine and Turkey’s petrol distribution sector. This week, SOCAR said it is opening eight petrol station in Kiev. Last week SOCAR said it was in talks to buy OMV Petrol Ofisi, the Turkish subsidiary of Austria’s OMV.

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(News report from Issue No. 277, published on  April 22 2016)

 

First petrol from Iran arrives in Tajikistan

FEB. 3 2016,  DUSHANBE (The Conway Bulletin) — Iran shipped its first batch of petrol to Tajikistan, a deal both countries credited to the lifting of Western sanctions.

It’s also, importantly, more evidence of the impact that post-sanctions Iran is having on Central Asia and the South Caucasus. Reports from across the region have shown a sharp increase in trade with Iran since the US and the European Union lifted sanctions on Jan. 16.

These deals have included an agreement with Kazakh airline Air Astana, grPain agreements with Kazakhstan, trade arrangements with Armenia and the arrival of the first train, via Central Asia, direct from China in Iran.

But it is, perhaps, petrol exports to the Central Asia/South Caucasus region where Iran can have the biggest impact.

Officials from the National Iranian Oil Products Distribution Company told local media the shipment of petrol to Tajikistan measured 2.9m litres, a volume they could maintain on a daily basis. If it did send this amount of petrol to Tajikistan every day, Iran’s petrol exports would measure around 750,000 tonnes a year. This roughly equals Tajikistan’s total current consumption. It had previously imported most of its petrol from Russia.

Mohammad-Mehdi Gharaei, director of the distribution company, told media that Tajikistan had asked for the petrol products. “In view of the [post-sanctions] conditions, Tajikistan requested in early February to purchase Iranian gasoline,” he said.

Iran sent petrol to Tajikistan on trucks through Afghanistan.

Iran is a net importer of petrol. This, though, will change later this year when a new super-sized refinery opens on the Persian Gulf. This refinery will turn Iran into a petrol exporter and Central Asia and the South Caucasus will be a prime target market. They just don’t have enough refinery capacity.

Iman Nasseri, of FGE energy consultancy in London, said Iran is looking to capture market share.

“In the post-sanctions era we expect more shipments from Iran. Most of these might have been discussed and negotiated before sanctions were lifted,” Mr Nasseri told The Bulletin.

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(News report from Issue No. 266, published on Feb. 5 2016)

 

Editorial: Iranian oil for Tajikistan

FEB. 5 2016 (The Conway Bulletin) – Iran is emerging from its economic exile with force and its impact is being felt across Central Asia and the South Caucasus.

The new petrol export deal with Tajikistan, together with recent deals with Kazakhstan’s Air Astana and the negotiations with Armenia and Georgia over gas supplies, is a testimony of the importance that countries in the region give to Iran as a trade partner.

Iran is still a net importer of gasoline but it is now close to opening a new 18m tonnes refinery on the Persian Gulf coast, which officials say “will change the gasoline balance in Iran” and could possibly turn the country into a net exporter.

For countries like Tajikistan this is good news as it means that Iran could become a supplier of oil for both Central Asia and the South Caucasus.

Tajikistan has previously bought all its refined petrol from Russia. With Iran’s re-emergence onto the scene this over-reliance on its former colonial master is reduced, giving Tajikistan a genuine choice on where to buys its petrol.

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(Editorial from Issue No. 266, published on Feb. 5 2016)

 

Kazmunaigas to boost petrol market

SEPT. 18 2015 (The Conway Bulletin) — Kazmunaigas Processing and Marketing (KMG P&M), a branch of the state-owned oil and gas company Kazmunaigas, said it wants to increase its brand’s share of the petrol retail market in Kazakhstan to around 33%. KMG P&M currently owns 324 petrol stations across the country representing 12% of the total. The company is selling 146 stations to private investors to reduce costs. The new owners will keep the Kazmunaigas brand. KMG P&M will then buy more stations to increase the number of petrol stations carrying its brand.

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(News report from Issue No. 249, published on Sept. 25 2015)

Kazakh government ditches petrol price controls

SEPT. 4 2015, ALMATY (The Conway Bulletin) — The Kazakh government scrapped petrol price controls, another major admission that the market rather than the state is better placed to direct its economy.

Government officials blamed the volatility in foreign exchange markets for scrapping price controls on petrol which immediately jumped in price by around 40%.

Pressured by low oil prices, rising inflation and the depressed value of the Russian rouble, the Kazakh Central Bank released the tenge from its US dollar peg last month. It fell 23% in one day and is now trading at an all-time low of around 262/$1 which made petrol excessively cheap.

Deputy PM Bakhytzhan Sagintayev was handed the task of explaining the new policy to journalists.

“Having studied all possible options and discussed the issue with market players, we decided there should be a flexible pricing model given the ongoing volatility at the FX market,” he said. “The Government has decided to stop regulating prices for AI-92 and AI-93 petrol.”

In Almaty, Kazakhstan largest city, the effect was immediate. Queues snaked out of petrol stations as drivers rushed to fill their tanks.

Guldariya Iskakova, an accountant, summed up the feeling of people in Almaty about the petrol price rises. “It is awful. We are now seriously thinking to use public bus,” she said. “Our expenses have increased several times. The prices for petrol increased by 20 tenge in just one day.”

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(News report from Issue No. 247, published on Sept. 11 2015)

 

Iran suggests petrol imports for Kazakhstan

JULY 22 2015 (The Conway Bulletin) – Iran could export refined oil products to Kazakhstan, Vahid Ahmadi, the Iranian deputy science minister, told media. This is important because Kazakhstan is looking for ways to boost its supply of oil-based products.

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(News report from Issue No. 241, published on July 23 2015)

 

Georgia’s anti-monopoly agency fines petrol retailers

JULY 15 2015 (The Conway Bulletin) – Georgia’s Competition Agency fined the country’s five largest petrol retailers $23m for price fixing. The companies fined were SOCAR Georgia Petroleum, Sun Petroleum Georgia, Rompetrol Georgia, Wissol Petroleum Georgia, and Lukoil Georgia.

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(News report from Issue No. 240, published on July 16 2015)