Oil Market Outlook in Azerbaijan, 2010

Report Summary

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 crude oil assets (oil fields, refineries, pipelines and storage terminals) 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 crude oil 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 1996-2020.
• Historical and forecast data and information for all the major oil fields, refineries, pipelines and storage terminals in Azerbaijan for the period 2000-2013.
• Operator and equity details for major crude oil 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 crude oil assets and their performance.
• Analyze the latest news and financial deals in the oil 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 8

2 Azerbaijan, Energy Sector 9
2.1 Azerbaijan Energy Sector, Market Overview 9
2.2 Azerbaijan Energy Sector, Crude Oil 10
2.2.1 Azerbaijan Crude Oil, Overview 10
2.2.2 Azerbaijan Crude Oil, Supply and Demand Balance 10
2.2.3 Azerbaijan Crude Oil, Regulatory Structure 16
2.2.4 Azerbaijan Crude Oil, Infrastructure 16

3 Azerbaijan Oil Upstream Investment Environment Benchmarking 18
3.1 Introduction 18
3.2 The Overall Ranking 18
3.3 Upstream Fiscal Attractiveness 19
3.3.1 Maximum Government Take Index 20
3.3.2 Maximum State Participation 20
3.4 Oil Sector Performance 21
3.4.1 Exploration Activity 23
3.4.2 Oil Production 24
3.4.3 Oil Reserves 24
3.4.4 Oil Consumption 24
3.4.5 Refining Industry 25
3.5 Economic Performance 25
3.5.1 GDP Growth Index 27
3.5.2 FDI Confidence Index 27
3.5.3 Balance of Trade Index 27
3.6 Socio-Political Performance 27
3.6.1 Democracy Index 29
3.6.2 Governance Index 29

4 Azerbaijan Exploration and Production Sector 30
4.1 Azerbaijan Exploration and Production Sector, Country Snapshot 30
4.1.1 Azerbaijan Exploration and Production Sector, Key Data 30
4.1.2 Azerbaijan Exploration and Production Sector, Crude Oil Assets Map 30
4.2 Azerbaijan Exploration and Production Sector, Gross Crude Oil Production 31
4.2.1 Azerbaijan Exploration and Production Sector, Total Gross Crude Oil-Historical Production 31
4.2.2 Azerbaijan Exploration and Production Sector, Gross Crude Oil Production by Assets 32
4.2.3 Azerbaijan Exploration and Production Sector, Gross Equity Weighted Crude Oil Production by Company 32
4.2.4 Azerbaijan Exploration and Production Oil Sector, Market Share (%) based on Gross Equity Weighted Crude Oil Production 33
4.3 Azerbaijan Exploration and Production Sector, Gross Crude Oil Forecasts 34
4.3.1 Azerbaijan Exploration and Production Sector, Gross Crude Oil Forecasted Production 34
4.4 Azerbaijan Exploration And Production Sector, Crude Oil Asset Details 35
4.4.1 Azerbaijan Exploration And Production Sector, Active Crude Oil Asset Details 35
4.5 Azerbaijan Exploration and Production Sector, Drilling and Production Updates 35
4.5.1 Aug 09, 2010: Socar Commissions Two New Wells At Pirallahi Field 35
4.5.2 Aug 06, 2010: Socar Commissions Well No. 39 At Jafarli Field 35
4.5.3 Jul 27, 2010: Socar Puts New Well Into Operation In Oil Rocks Field, Azerbaijan 35
4.5.4 Jun 18, 2010: Socar's Oil Production Drops By 17,000 Tons During January-May 2010 36
4.5.5 Jun 11, 2010: BP's Shah Deniz Field Pumps 18 Mcm 36
4.5.6 May 26, 2010: Socar's Complex Drilling Works Trust To Commission 78 Wells In 2010 36
4.5.7 May 25, 2010: Socar Puts New Well Into Operation In Alat Daniz Field, Azerbaijan 37
4.5.8 May 18, 2010: Socar Puts No. 447 Well Into Production At Gum Daniz Field In Azerbaijan 37
4.5.9 May 06, 2010: Socar Drills New Well From Platform No. 660 At Darvin Bankasy Field 37

5 Azerbaijan Pipeline Sector 38
5.1 Azerbaijan Pipeline Sector, Key Data 38
5.2 Azerbaijan Pipeline Sector, An Overview 38
5.3 Azerbaijan Pipeline Sector, Comparision of Key Crude Oil Pipeline Companies 38
5.4 Azerbaijan Pipeline Sector, Crude Oil Pipelines 39

6 Azerbaijan Refining Sector 40
6.1 Azerbaijan Refining Sector, Key Data 40
6.2 Azerbaijan Refining Sector, An Overview 40
6.2.1 Azerbaijan Refining Sector, Total Refining Capacity 40
6.3 Azerbaijan Refining Sector, Capacity- Wise Market Share by Company 41
6.4 Azerbaijan Refining Sector, Crude Distillation Unit Capacity 42
6.5 Azerbaijan Refining Sector, Coking Capacity 42
6.6 Azerbaijan Refining Sector, Fluid Catalytic Cracking Capacity 42

7 Azerbaijan Oil and Chemicals Storage Sector 43
7.1 Azerbaijan Oil and Chemicals Storage Sector, Key Data 43
7.2 Azerbaijan Oil and Chemicals Storage Sector, An Overview 43
7.2.1 Azerbaijan Oil and Chemicals Storage Sector, Total Storage Capacity 43
7.3 Azerbaijan Oil and Chemicals Storage Sector, Capacity-Wise Market Share By Company 44
7.4 Azerbaijan Oil and Chemicals Storage Sector, Storage Capacity 45

8 Profile of BP p.l.c. 46
8.1 BP p.l.c., Key Information 46
8.2 BP p.l.c., Company Overview 46
8.3 BP p.l.c., Business Description 46
8.3.1 Business Overview 46
8.3.2 Exploration and Production 47
8.3.3 Other Businesses and Corporate Segment 49
8.3.4 Refining and Marketing 50
8.4 BP p.l.c., SWOT Analysis 52
8.4.1 Overview 52
8.4.2 BP p.l.c. Strengths 53
8.4.3 BP p.l.c. Weaknesses 54
8.4.4 BP p.l.c. Opportunities 55
8.4.5 BP p.l.c. Threats 56

9 Profile of Chevron Corporation 58
9.1 Chevron Corporation, Key Information 58
9.2 Chevron Corporation, Company Overview 58
9.3 Chevron Corporation, Business Description 58
9.3.1 Business Overview 58
9.3.2 Chemicals 59
9.3.3 Downstream 59
9.3.4 Others 61
9.3.5 Upstream Segment 62
9.4 Chevron Corporation, SWOT Analysis 64
9.4.1 Overview 64
9.4.2 Chevron Corporation Strengths 65
9.4.3 Chevron Corporation Weaknesses 66
9.4.4 Chevron Corporation Opportunities 67
9.4.5 Chevron Corporation Threats 68

10 Profile of INPEX Corporation 69
10.1 INPEX Corporation, Key Information 69
10.2 INPEX Corporation, Company Overview 69
10.3 INPEX Corporation, Business Description 69
10.3.1 Business Overview 69

11 Financial Deals Landscape 71
11.1 Detailed Deal Summary 71
11.1.1 Partnerships 71
11.1.2 Asset Transactions 72

12 Recent Developments 74
12.1 Strategy and Business Expansion 74
12.1.1 Jul 20, 2010: Eni In Azerbaijan To Discuss CNG, Upstream Opportunities 74
12.1.2 Jul 19, 2010: Socar, BOTAS Sign DoI For Natural Gas Pipeline 74
12.1.3 Jul 06, 2010: Socar, BP Sign Heads Of Agreement On Exploration Development In Azerbaijan 74
12.2 Other Significant Developments 75
12.2.1 Aug 03, 2010: Socar's Kulevi Terminal Delivers 407,982 Tons Of Oil And Oil Products In July 2010 75
12.2.2 Jul 27, 2010: Indian Refineries Set To Purchase Oil From Azerbaijan 75
12.2.3 Jul 07, 2010: Socar's Black Sea Terminal Receives 393,500 Tons Of Oil And Oil Products 75
12.2.4 Jun 17, 2010: Socar Ships 5 Mt Of Oil And Oil Products Via Kulevi Black Sea Terminal 76
12.2.5 May 21, 2010: Socar Completes Drilling Fourth Well In Oil Rocks Field, Azerbaijan 76
12.2.6 May 18, 2010: Azerbaijani Refineries Boost Oil Production By 15% During January-April 2010 76
12.2.7 May 14, 2010: Socar Appoints Two New Vice Presidents 76
12.2.8 May 13, 2010: Azerbaijan Produces More Diesel In January-April 2010 77
12.2.9 May 11, 2010: Socar's Jeyhan Port Exports Over 3.1 MT Of Oil In April 2010 77
12.2.10 May 11, 2010: Socar Transports 3.1 MT of Azerbaijani Oil Via BTC Pipeline 77

13 Appendix 78
13.1 Methodology 78
13.1.1 Coverage 78
13.1.2 Secondary Research 79
13.1.3 Primary Research 79
13.1.4 Midstream Forecasts 80
13.1.5 Expert Panel Validation 80
13.2 Contact Us 81
13.3 About the Publisher 81
13.4 Disclaimer 81

List of Tables

Table 1: Azerbaijan, Historic and Forecast Production and Consumption of Crude Oil, 1996-2020 11
Table 2: Azerbaijan, Historic and Forecast Crude Oil Exports, 1996-2020 13
Table 3: Azerbaijan, Historic Reserves of Crude Oil, 1996-2009 15
Table 4: Former Soviet Union, Investment Benchmarking, Overall Country Rankings, July 2010 18
Table 5: Former Soviet Union, Investment Benchmarking, Upstream Fiscal Attractiveness, July 2010 19
Table 6: Former Soviet Union, Investment Benchmarking, Oil Sector Performance, July 2010 21
Table 7: Former Soviet Union, Investment Benchmarking, Economic Performance, July 2010 25
Table 8: Former Soviet Union, Country Standings, Economic Performance, July 2010 26
Table 9: Former Soviet Union, Investment Benchmarking, Socio-Political Performance, July 2010 28
Table 10: Former Soviet Union, Country Standings, Socio-Political Performance, July 2010 28
Table 11: Azerbaijan, Crude Oil Key Statistics, 2009 30
Table 12: Azerbaijan, Total Gross Crude Oil Production (MMBBLs), 2002-2009 31
Table 13: Azerbaijan, Gross Crude Oil Production (MMBBLs), by Assets, 2002-2009 32
Table 14: Azerbaijan, Gross Equity Weighted Crude Oil Production by Company (MMBBLs), 2002-2009 32
Table 15: Azerbaijan, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2002-2009 33
Table 16: Azerbaijan, Total Crude Oil Production (MMBBLs), Forecast by Assets, 2010- 2015 34
Table 17: Azerbaijan, Active Oil Field Asset Details 35
Table 18: Azerbaijan, Pipeline Key Statistics, 2009 38
Table 19: Azerbaijan, Crude Oil Pipeline Length by Company (Km), 2009 38
Table 20: Azerbaijan, Crude Oil Pipelines, 2009 39
Table 21: Azerbaijan, Refinery Key Statistics, 2009 40
Table 22: Azerbaijan, Total Refining Capacity (MMTPA), 2000- 2013 40
Table 23: Azerbaijan, Refining Capacity by Company (MMTPA), 2000-2013 41
Table 24: Azerbaijan, Crude Distillation Unit Capacity (MMTPA), 2000-2013 42
Table 25: Azerbaijan, Coking Unit Capacity (MMTPA), 2000-2013 42
Table 26: Azerbaijan, Fluid Catalytic Cracking Unit Capacity (MMTPA), 2000-2013 42
Table 27: Azerbaijan, Oil and Chemicals Storage Key Statistics, 2009 43
Table 28: Azerbaijan, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 43
Table 29: Azerbaijan, Oil and Chemicals Storage Capacity by Company (Thousand M3), 2000-2013 44
Table 30: Azerbaijan, Oil and Chemicals Storage Capacity (Thousand M3), 2000-2013 45
Table 31: BP p.l.c., Key Facts 46
Table 32: BP p.l.c., SWOT Analysis 53
Table 33: Chevron Corporation, Key Facts 58
Table 34: Chevron Corporation, SWOT Analysis 65
Table 35: INPEX Corporation, Key Facts 69
Table 36: Bulgartransgaz Plans To Form Joint Venture With SOCAR 71
Table 37: BP To Acquire Oil Assets From Devon Energy 72

List of Figures

Figure 1: Azerbaijan, Energy Sector Split By Fuel Type, 2009 9
Figure 2: Azerbaijan, Crude Oil Production And Consumption, Thousand Barrels Per Day, 1996-2020 12
Figure 3: Azerbaijan, Crude Oil Exports, Thousand Barrels Per Day, 1996-2020 14
Figure 4: Azerbaijan, Crude Oil Reserves, Million Barrels, 1996-2009 16
Figure 5: Former Soviet Union, Country Standings, Upstream Fiscal Attractiveness, July 2010 20
Figure 6: Former Soviet Union, Country Standings, Oil Sector Performance, by Reserves-Exploration & Production, July 2010 21
Figure 7: Former Soviet Union, Country Standings, Oil Sector Performance, by Production-Consumption & Refining, July 2010 23
Figure 8: Former Soviet Union, Country Standings, Exploration Blocks Awarded, July 2010 24
Figure 9: Former Soviet Union, Country Standings, Economic Performance, July 2010 26
Figure 10: Former Soviet Union, Country Standings, Socio-Political Performance, July 2010 29
Figure 11: Azerbaijan, Crude Oil Assets Map, 2009 30
Figure 12: Azerbaijan, Total Gross Crude Oil Production (MMBBLs), 2002-2009 31
Figure 13: Azerbaijan, Gross Equity Weighted Crude Oil Production (MMBBLs) by Company, 2002-2009 33
Figure 14: Azerbaijan, Market Share (%) based on Gross Equity Weighted Crude Oil Production, 2009 34
Figure 15: Azerbaijan, Crude Oil Pipeline Length by Company (Km), 2009 39
Figure 16: Azerbaijan, Total Refining Capacity (MMTPA), 2000- 2013 41
Figure 17: Azerbaijan, Total Oil and Chemicals Storage Capacity (Thousand M3), 2000- 2013 44
Figure 18: Azerbaijan, Oil and Chemicals Storage Capacity by Company (Thousand M3), 2000-2013 45