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SOCAR says low oil prices not affect its activity

21 September 2016 [13:17] - TODAY.AZ

By Azernews


By Nigar Abbasova

Azerbaijan’s state energy giant SOCAR has not abandoned any of its planned projects, despite the falling oil prices in the world market.

President of SOCAR Rovnag Abdullayev announced about this, while addressing the event dedicated to the Day of Oil Workers in Azerbaijan.

“One of such projects is modernization of Baku Oil Refinery Plant named after Heydar Aliyev. We are intended to continue implementation of the project and carry out reconstruction of four rigs. We are planning to construct 12 additional rigs, while capacity of the refinery will reach the level of 7.5 million tons per year,” he said.

Abdullayev emphasized that projects realized by SOCAR are expected to yield an income worth several billion of dollars.  

Gradual reconstruction and modernization plan, which is expected to be continued until 2019-2020 includes implementation of technical servicing operations and analysis of conditions of equipment.

Catalytic cracking, primary processing, coking and catalytic reforming facilities have been commissioned, following the successful implementation of maintenance operations at the refinery.

Heydar Aliyev Oil Refinery, which is engaged in the production of light petroleum products, is processing 21 out of 24 grades of Azerbaijani crude and 15 different petroleum products.

 The plant completely meets the entire demand for petroleum products in the country, while 45 percent of its petroleum products are exported.

Continuously declining oil prices, which are believed to have been triggered by oversupply and glut in the market, hit many major energy companies of the world, forcing them to cut down some expenses and take certain measures to maintain their financial strength.

 SOCAR has also identified a number of measures and pursued a belt-tightening policy directing financial resources to more lucrative areas where expenditures are low, while trying not to harm the company's technical activities.

The volume of proven oil reserves of the country currently stands at approximately 2 billion tons, while the volume of gas reserves amount to 2.6 trillion cubic meters. Forecasted volumes stand at 4.5 million tons and 5.4 tcm of oil and gas respectively.

URL: http://www.today.az/news/business/154367.html

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