TODAY.AZ / Business

Petronas paves path to Azerbaijan’s energy market

04 September 2015 [13:18] - TODAY.AZ

/By AzerNews/

By Gulgiz Dadashova

Bilateral relations between Malaysia and Azerbaijan have stepped higher as Malaysia’s Petronas Company seems firm on entering the Azerbaijani market.

President Ilham Aliyev said a close partnership between Azerbaijan’s energy giant SOCAR and Petronas would contribute to the strengthening of Azerbaijani-Malaysian bilateral relations.

Addressing a delegation led by the President and CEO of Petronas, Datuk Wan Zulkiflee Wan Ariffin, on September 4 in Baku, President Aliyev noted that there was great potential and promising initiative in various aspects of these ties, especially in the oil and gas sector.

Touching upon Petronas` activities in the Azerbaijani energy sector, he stressed the importance of discussions aimed at determining a new format for partnership, as these discussions will open up new opportunities.

Petronas already has working experience in the Caspian Sea region. The company has been operating on Turkmen territory in the Caspian since 1996 under a production sharing agreement (PSA).

In May 2006, the company started commercial oil production and export in Turkmenistan and part of this extracted oil is transported to world markets via Azerbaijan.

Wan Ariffin, in turn, said Petronas would remain committed to cooperating with Azerbaijan, praising the investment environment in the country.

“Petronas attaches great importance to its cooperation with SOCAR in all areas,” he said, reaffirming that his company was keen on expanding its activity in Azerbaijan.

Touching upon development of Azerbaijan’s Shah Deniz gas field, he stated Petronas will take an active role in the realization of this project.

Currently, Petronas has a 15.5 percent share in the Shah Deniz field development project and the South Caucasus gas pipeline. It also owns a 12.4 percent stake in the Azerbaijan Gas Supply Company.

Petronas redeemed these shares from Norwegian Statoil, which announced its decision to sell its 20 percent stake in the Trans Adriatic Pipeline, estimated at about $ 400 million. Petronas, seeking to be a major player in Azerbaijan and the region, is an obvious candidate for participation in this project.

On the same day, SOCAR and Petronas signed an addendum to the memorandum of understanding.

SOCAR President Rovnag Abdullayev said that the oil and gas industry of Azerbaijan provides great opportunities for increasing cooperation, and the country fully guarantees the security of investments made in the country.

Abdullayev spoke about the process of implementing the Shah Deniz-2 project and creating the Southern Gas Corridor, stressing that the work is being conducted on schedule.

"The conducted work gives confidence that the first gas supplies through the Southern Gas Corridor to Turkey will begin in 2018," Abdullayev said.

Petronas, established in 1974, conducts business in 35 countries. Currently, Petronas ensures about 40% of incomes in the country. The company has turned into an internationally recognizable symbol for the country.

URL: http://www.today.az/news/business/143436.html

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