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Azerbaijan's Energy Industry

Denis LEMARCHAL

Managing Director

TOTAL E&P ABSHERON

We have to identify and refine our development scheme to limit capex, which means that we must optimise the use of existing facilities.
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Azerbaijan In Figures

Oil reserves7 billion barrels

Oil production722,000 bopd

Gas reserves2.5 tcm

Gas production31.8 bcm

Azerbaijan: The Historical Energy Powerhouse

Azerbaijan’s energy industry is one of the world’s oldest and remains a crucial hydrocarbons supplier in the Caspian Sea region. Its offshore basins hold significant reserves that are produced mainly by the State Oil Company of Azerbaijan Republic. The NOC is responsible for negotiating and signing PSCs and developing the nation’s resources. BP is the largest foreign investor in the nation and has operated in the country since 1992.

Most of the country’s oil and gas production is produced from its Azeri–Chirag–Gunashli fields, which is pumped onshore by pipeline to the Sangachal terminal south of Baku. Much of the oil produced is exported towards Europe through an 850-kilometre pipeline to its neighbour, Georgia.

The country is transitioning its energy industry from its traditionally oil-centric production to becoming a growing gas producer and exporter. The Shah Deniz field located 70 kilometres from Baku in water depths of up to 1,600 metres is one of the world’s largest gas and condensate fields and accounts for most Azerbaijan’s natural gas reserves. The development produced its first gas in 2006.

While practical development of renewable energy sources has been limited, the country has significant potential. Azerbaijan generates about 8% of its electricity from large hydropower installations. The country aims to reduce greenhouse gas emissions by 35% by 2030 from its emissions figures in 1990, which will involve revamping a substantial energy industry that accounts for the majority of its GDP and around 90% of its exports.

Azerbaijan's Energy Industry News and Interviews

Turkey-Italy pipeline moves to up capacity
NEWS
Multinational - February 02, 2023

The Trans Adriatic Pipeline has entered its first phase of development to increase gas flow capacity between Turkey and Italy,…

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EU eyes Azeri hydrogen in pivot from Russian gas
NEWS
Azerbaijan - July 19, 2022

The EU has reached a deal to double natural gas imports from Azerbaijan in its bid to phase out Russian gas by 2027, while…

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Masdar to build 4 GW of clean energy in Azerbaijan
NEWS
Azerbaijan - June 08, 2022

Masdar has signed two implementation agreements with the Ministry of Energy of Azerbaijan Republic to develop an initial 4 GW of renewable capacity in the country, the…

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Articles
Azerbaijan - May 25, 2022

Baku Energy Week is the Caspian region’s most prestigious event in the oil and gas and energy sector.

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Energy, Ukraine and the Turkish question Mehmet Ogutcu
Interview
Multinational - May 06, 2022

Mehmet Öğütçü, CEO of Global Resources Partners and chairman of the London Energy Club, talks to The Energy Year about changes in the global energy picture brought…

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Lukoil buys $1.45-billion stake in Azerbaijan play
NEWS
Azerbaijan - February 21, 2022

Lukoil has acquired a further 9.99% interest in the Shah Deniz gas project in Azerbaijan from Malaysian NOC Petronas for around USD 1.45 billion, the Russian…

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Oil down despite US stimulus optimism
NEWS
Multinational - September 29, 2020

Azerbaijan’s energy industry is one of the world’s oldest and remains a crucial hydrocarbons supplier in the Caspian Sea region. Its offshore basins hold…

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