Azerbaijan Gas Markets, 2011

Report Summary

Azerbaijan Gas Markets, 2011 - This profile is the essential source for top-level energy industry data and information. The report provides an overview of each of the key sub-segments of the energy industry in Azerbaijan. It details the market structure, regulatory environment, infrastructure and provides historical and forecasted statistics relating to the supply/demand balance for each of the key sub-segments. It also provides information relating to the natural gas assets (gas fields, pipelines and underground gas storage facilities) in Azerbaijan. The report compares the investment environment in Azerbaijan with other countries in the region. The profiles of the major companies operating in the natural gas sector in Azerbaijan together with the latest news and deals are also included in the report.

Scope

• Historic and forecast data relating to production, consumption, imports, exports and reserves are provided for each industry sub-segment for the period 2000-2020.
• Historical and forecast data and information for all the major gas fields, pipelines and underground gas storage facilities in Azerbaijan for the period 2000-2015.
• Operator and equity details for major natural gas assets in Azerbaijan.
• Key information relating to market regulations, key energy assets and the key companies operating in the Azerbaijan's energy industry.
• Information on the top companies in the Azerbaijan including business description, strategic analysis, and financial information.
• Product and brand updates, strategy changes, R&D projects, corporate expansions and contractions and regulatory changes.
• Key mergers and acquisitions, partnerships, private equity and venture capital investments, and IPOs.

Reasons to buy

• Gain a strong understanding of the country's energy market.
• Facilitate market analysis and forecasting of future industry trends.
• Facilitate decision making on the basis of strong historic and forecast production, reserves and capacity data.
• Assess your competitor's major natural gas assets and their performance.
• Analyze the latest news and financial deals in the gas sector of each country.
• Develop strategies based on the latest operational, financial, and regulatory events.
• Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the market.
• Identify and analyze the strengths and weaknesses of the leading companies in the country.

Table of Contents

1 Table Of Contents 2
1.1 List of Tables 7
1.2 List of Figures 9

2 Azerbaijan, Energy Sector 10
2.1 Azerbaijan Energy Sector, Market Overview 10
2.2 Azerbaijan Energy Sector, Natural Gas 11
2.2.1 Azerbaijan Natural Gas, Overview 11
2.2.2 Azerbaijan Natural Gas, Supply and Demand Balance 11
2.2.3 Azerbaijan Natural Gas, Regulatory Structure 17
2.2.4 Azerbaijan Natural Gas, Infrastructure 18

3 Azerbaijan Gas Upstream Investment Environment Benchmarking 19
3.1 Introduction 19
3.2 The Overall Ranking 19
3.3 Upstream Fiscal Attractiveness 19
3.3.1 Maximum Government Take Index 21
3.3.2 Maximum State Participation 21
3.4 Gas Sector Performance 21
3.4.1 Exploration Activity 24
3.4.2 Gas Production 24
3.4.3 Gas Reserves 25
3.4.4 Gas Consumption 25
3.5 Economic Performance 25
3.5.1 GDP Growth Index 26
3.5.2 FDI Confidence Index 26
3.5.3 Balance of Trade Index 27
3.6 Socio-Political Performance 27
3.6.1 Democracy Index 28
3.6.2 Governance Index 28

4 Azerbaijan Exploration and Production Sector 29
4.1 Azerbaijan Exploration and Production Sector, Country Snapshot 29
4.1.1 Azerbaijan Exploration and Production Sector, Key Data 29
4.1.2 Azerbaijan Exploration and Production Sector, Natural Gas Assets Map 29
4.2 Azerbaijan Exploration and Production Sector, Marketed Natural Gas Production 30
4.2.1 Azerbaijan Exploration and Production Sector, Total Marketed Natural Gas-Historical Production 30
4.2.2 Azerbaijan Exploration and Production Sector, Marketed Natural Gas Production by Type 31
4.2.3 Azerbaijan Exploration and Production Sector, Marketed Natural Gas Production by Assets 32
4.2.4 Azerbaijan Exploration and Production Sector, Marketed Equity Weighted Natural Gas Production by Company 32
4.2.5 Azerbaijan Exploration and Production Sector, Market Share based on Marketed Weighted Natural Gas Production 33
4.3 Azerbaijan Exploration and Production Sector, Marketed Natural Gas Forecasts 34
4.3.1 Azerbaijan Exploration and Production Sector, Marketed Natural Gas Forecasted Production 34
4.4 Azerbaijan Exploration And Production Sector, Natural Gas Asset Details 35
4.4.1 Azerbaijan Exploration And Production Sector, Active Natural Gas Asset Details 35
4.5 Azerbaijan Exploration And Production Sector, Major Natural Gas Discoveries 36
4.5.1 Azerbaijan Exploration And Production Sector, Natural Gas Discoveries by Year, 2005-2010 36
4.5.2 Azerbaijan Exploration And Production Sector, Natural Gas Discovery Details, 2005-2010 36
4.6 Azerbaijan Exploration And Production Sector, Recent Discoveries 37
4.6.1 Nov 24, 2010: Socar Discovers New Gas Field In Azerbaijan 37
4.7 Azerbaijan Exploration And Production Sector, Drilling and Production Updates 37
4.7.1 May 17, 2011: Shah Deniz Field Pumps 1.84bcm Gas In Q1 2011: BP 37
4.7.2 Apr 21, 2011: Socar Drills New Well At Oil Rocks Field In Azerbaijan 37
4.7.3 Apr 20, 2011: Socar Commissions Two Wells At Darvin Bankasy Field In Azerbaijan 37
4.7.4 Apr 12, 2011: Socar Drills New Well On Pirallahy Field In Azerbaijan 38
4.7.5 Mar 02, 2011: BP Updates On Azeri-Chirag-Gunashli Oil Project In Azerbaijan 38

5 Azerbaijan Pipeline Sector 39
5.1 Azerbaijan Pipeline Sector, Key Data 39
5.2 Azerbaijan Pipeline Sector, An Overview 39
5.3 Azerbaijan Pipeline Sector, Comparison of Key Natural Gas Pipeline Companies 39
5.4 Azerbaijan Pipeline Sector, Natural Gas Pipelines 41

6 Azerbaijan Underground Gas Storage Sector 42
6.1 Azerbaijan Underground Gas Storage Sector, Key Data 42
6.2 Azerbaijan Underground Gas Storage Sector, An Overview 42
6.3 Azerbaijan Underground Gas Storage Sector, Capacity-Wise Market Share by Company 42
6.4 Azerbaijan Underground Gas Storage Sector, Storage Capacity 43
6.4.1 Azerbaijan Underground Gas Storage Sector, Storage Capacity of Active Terminals 43

7 Profile of Exxon Mobil Corporation 44
7.1 Exxon Mobil Corporation, Key Information 44
7.2 Exxon Mobil Corporation, Company Overview 44
7.3 Exxon Mobil Corporation, Business Description 44
7.3.1 Business Overview 44
7.3.2 Chemical 45
7.3.3 Downstream 45
7.3.4 Upstream 46
7.4 Exxon Mobil Corporation, SWOT Analysis 47
7.4.1 Overview 47
7.4.2 Exxon Mobil Corporation, Strengths 48
7.4.3 Exxon Mobil Corporation, Weaknesses 50
7.4.4 Exxon Mobil Corporation, Opportunities 51
7.4.5 Exxon Mobil Corporation, Threats 52

8 Profile of TOTAL S.A 54
8.1 TOTAL S.A, Key Information 54
8.2 TOTAL S.A, Company Overview 54
8.3 TOTAL S.A, Business Description 54
8.3.1 Business Overview 54
8.3.2 Chemicals 55
8.3.3 Downstream 55
8.3.4 Upstream 56
8.4 TOTAL S.A, SWOT Analysis 58
8.4.1 Overview 58
8.4.2 TOTAL S.A. Strengths 58
8.4.3 TOTAL S.A. Weaknesses 60
8.4.4 TOTAL S.A. Opportunities 60
8.4.5 TOTAL S.A. Threats 61

9 Profile of BP p.l.c 63
9.1 BP p.l.c, Key Information 63
9.2 BP p.l.c, Company Overview 63
9.3 BP p.l.c, Business Description 63
9.3.1 Business Overview 63
9.3.2 Exploration and Production 64
9.3.3 Other Businesses and Corporate Segment 65
9.3.4 Refining and Marketing 66
9.4 BP p.l.c, SWOT Analysis 67
9.4.1 Overview 67
9.4.2 BP p.l.c. Strengths 68
9.4.3 BP p.l.c. Weaknesses 69
9.4.4 BP p.l.c. Opportunities 70
9.4.5 BP p.l.c. Threats 72

10 Financial Deals Landscape 73
10.1 Detailed Deal Summary 73
10.1.1 Debt Offerings 73
10.1.2 Partnerships 74
10.1.3 Asset Transactions 78

11 Recent Developments 84
11.1 Strategy and Business Expansion 84
11.1.1 Dec 03, 2010: Socar, BP Azerbaijan Sign MoU On Geological Collaboration 84
11.1.2 Jul 20, 2010: Eni In Azerbaijan To Discuss CNG, Upstream Opportunities 84
11.1.3 Jul 19, 2010: Socar, BOTAS Sign DoI For Natural Gas Pipeline 84
11.2 Other Significant Developments 84
11.2.1 May 17, 2011: Stage-1 Of Shah Deniz Gas Field Financing Reaches Project Completion 84
11.2.2 May 10, 2011: Azerbaijani Parliament Ratifies Shafag-Asiman PSA 85
11.2.3 Jan 28, 2011: Ukraine, Azerbaijan Sign LNG Supply Accord 86
11.2.4 Jan 13, 2011: European Commission And Azerbaijan Sign Strategic Gas Deal 86
11.2.5 Nov 30, 2010: BP And Partners To Invest $3 Billion On Azeri Gas Pipe Capacity 87
11.2.6 Nov 23, 2010: Socar Commissions No. 286 Well At Gunashli Field In Azerbaijan 87
11.2.7 Nov 17, 2010: Azerbaijan, Iran Sign MoU On Cooperation In Energy Sector 87
11.2.8 Nov 10, 2010: Azerbaijan Exports 3.2 Million Tons Of Oil From Jeyhan Port To World Markets In October 2010 87
11.2.9 Nov 10, 2010: Azerbaijan Ships 3.2 Million Tons Of Oil Through BTC Pipeline In October 2010 87
11.2.10 Oct 07, 2010: Socar Continues To Implement Construction Project Of Gas Pipeline In Nakhchivan Through Turkish Territory 88
11.2.11 Oct 05, 2010: Azerbaijan To Increase Oil Production To 60 Million Tonnes Per Year By 2015 88
11.2.12 Sep 15, 2010: TAP Reconfirms Shah Deniz II As Initial Gas Source For Pipeline 88

12 Appendix 89
12.1 Abbreviations 89
12.2 Methodology 89
12.2.1 Coverage 89
12.2.2 Secondary Research 90
12.2.3 Primary Research 90
12.2.4 Expert Panel Validation 90
12.3 Contact Us 91
12.4 Disclaimer 91

List of Tables

Table 1: Azerbaijan, Historic and Forecast Production and Consumption of Natural Gas, Billion Cubic Feet, 2000-2020 12
Table 2: Azerbaijan, Historic and Forecast Exports of Natural Gas, Billion Cubic Feet, 2000-2020 14
Table 3: Azerbaijan, Historic Reserves of Natural Gas, Billion Cubic Feet, 2000-2010 16
Table 4: Former Soviet Union, Investment Benchmarking, Overall Country Rankings, Jun 2011 19
Table 5: Former Soviet Union, Investment Benchmarking, Upstream Fiscal Attractiveness, Jun 2011 20
Table 6: Former Soviet Union, Investment Benchmarking, Gas Sector Performance, Jun 2011 21
Table 7: Former Soviet Union, Investment Benchmarking, Economic Performance, Jun 2011 25
Table 8: Former Soviet Union, Country Standings, Economic Performance, Jun 2011 25
Table 9: Former Soviet Union, Investment Benchmarking, Socio-Political Performance, Jun 2011 27
Table 10: Former Soviet Union, Country Standings, Socio-Political Performance, Jun 2011 28
Table 11: Azerbaijan, Natural Gas Key Statistics, 2010 29
Table 12: Azerbaijan, Total Marketed Natural Gas Production (MMcf), 2003- 2010 30
Table 13: Azerbaijan, Marketed Natural Gas Production by Type (MMcf), 2003- 2010 31
Table 14: Azerbaijan, Marketed Natural Gas Production (MMcf), by Assets, 2003-2010 32
Table 15: Azerbaijan, Marketed Equity Weighted Natural Gas Production by Company (MMcf), 2003- 2010 32
Table 16: Azerbaijan, Market Share (%) of Key Companies based on Marketed Natural Gas Production, 2003-2010 33
Table 17: Azerbaijan, Marketed Natural Gas Production (MMcf), Forecast by Assets, 2011- 2015 34
Table 18: Azerbaijan, Active Gas Field Asset Details 35
Table 19: Azerbaijan, Number of Gas Discoveries, 2005-2010 36
Table 20: Azerbaijan, Natural Gas Discovery Details, 2005-2010 36
Table 21: Azerbaijan, Pipeline Key Statistics, Jun 2011 39
Table 22: Azerbaijan, Natural Gas Pipeline Length by Company (Km), Jun 2011 39
Table 23: Azerbaijan, Natural Gas Pipelines, Jun 2011 41
Table 24: Azerbaijan, Underground Gas Storage Key Statistics, Jun 2011 42
Table 25: Azerbaijan, Underground Gas Storage Capacity by Company, Jun 2011 42
Table 26: Azerbaijan, Active Underground Gas Storage Capacity, Jun 2011 43
Table 27: Exxon Mobil Corporation, Key Facts 44
Table 28: Exxon Mobil Corporation, SWOT Analysis 48
Table 29: TOTAL S.A., Key Facts 54
Table 30: TOTAL S.A., SWOT Analysis 58
Table 31: BP p.l.c., Key Facts 63
Table 32: BP p.l.c., SWOT Analysis 67
Table 33: SOCAR Announces Private Placement Of Eurobonds For $500 Million 73
Table 34: BP Signs A Production Sharing Agreement With SOCAR 74
Table 35: Cape Enters Into Joint Venture With State Oil Company of Azerbaijan 75
Table 36: Bulgartransgaz Plans To Form Joint Venture With SOCAR 76
Table 37: BP Enters Into A Partnership With Socar 77
Table 38: SOCAR Plans To Acquire Additional 1.6% To 1.8% Stake In Azeri-Chirag-Guneshli From BP 78
Table 39: INPEX Southeast Caspian Sea Acquires Additional 0.96% Interest In ACG Field From Devon Energy Caspian 79
Table 40: Chevron Khazar Acquires Additional 0.99% Interest In ACG Field From Devon Energy Caspian 80
Table 41: Itochu Acquires Additional 0.38% Interest In ACG Field From Devon Energy 81
Table 42: BP Acquires Interest In ACG Field From Devon Energy 82
Table 43: GDF SUEZ Acquires 20% Stake In Absheron Offshore Block From Total And State Oil Company 83

List of Figures

Figure 1: Azerbaijan, Energy Consumption Split By Fuel Type (%), 2010 10
Figure 2: Azerbaijan, Natural Gas Production And Consumption, Billion Cubic Feet, 2000-2020 13
Figure 3: Azerbaijan, Natural Gas Exports, Billion Cubic Feet, 2000-2020 15
Figure 4: Azerbaijan, Natural Gas Reserves, Billion Cubic Feet, 2000-2010 17
Figure 5: Former Soviet Union, Country Standings, Upstream Fiscal Attractiveness, Jun 2011 20
Figure 6: Former Soviet Union, Country Standings, Gas Sector Performance, by Reserves-Exploration & Production, Jun 2011 22
Figure 7: Former Soviet Union, Country Standings, Gas Sector Performance, by Production & Consumption, Jun 2011 23
Figure 8: Former Soviet Union, Country Standings, Number of Exploration Blocks Awarded, Jun 2011 24
Figure 9: Former Soviet Union, Country Standings, Economic Performance, Jun 2011 26
Figure 10: Former Soviet Union, Country Standings, Socio-Political Performance, Jun 2011 28
Figure 11: Azerbaijan, Natural Gas Assets Map, Jun 2011 29
Figure 12: Azerbaijan, Total Marketed Natural Gas Production (MMcf), 2003- 2010 30
Figure 13: Azerbaijan, Marketed Natural Gas Production by Type (MMcf), 2003- 2010 31
Figure 14: Azerbaijan, Marketed Equity Weighted Natural Gas Production (MMcf) by Key Companies, 2003-2010 33
Figure 15: Azerbaijan, Market Share (%) of Key Companies based on Marketed Natural Gas Production by Key Companies, 2010 34
Figure 16: Azerbaijan, Number of Natural Gas Discoveries by Year, 2005-2010 36
Figure 17: Azerbaijan, Natural Gas Pipeline Length by Company (Km), Jun 2011 40