Oil and gas (26.10- 31.10.2009)

а) Oil and Gas production

Some 38 million tons of oil and condensate was produced in Azerbaijan in January-September. This index is by 8.5 percent more than index of oil and condensate production in January-September 2008, the Azerbaijani state statistics committee said.

Major volume of oil and gas condensate production fell on the block of the Azeri-Chirag-Guneshli offshore fields and the gas condensate Shah Deniz field - 31.5 million tons of oil and condensate, which is by 10.7 percent more than the same period of 2008.

Gas production was almost 17.3 billion cubic meters in Azerbaijan in January-September that an increase of 0.6 percent than in 2008. About 7.4 billion cubic meters of gas fell on Azeri-Chirag-Guneshli (associated gas) and Shah Deniz with a 16.4-percent increase from the same period of 2008.

Roughly 13.3 billion kilowatt-hour of energy was produced in Azerbaijan in January-September 2009 that 10.9 percent lower than in the same period of 2008.

b) Oil refinery

Total volume of oil processing at Azerbaijani oil refineries entering SOCAR (the State Oil Company of Azerbaijan) hit 4.5 million tons in January-September 2009 compared to 5.5 million tons in the similar period of 2008, SOCAR said.

Oil products are produced at two Baku refineries with capacity of 20 million tons of oil per year. Two refineries enter SOCAR annually processing 6 million tons of oil extracted onshore and offshore owing to own funds.

Processing of oil and production of oil products in Azerbaijan in January-September 2009:

c) Sale

The State Statistics Committee reported that approximately 2.8 million tons of oil products were sold to the internal market of Azerbaijan in January-September 2009, compared to over 3.6 million tons in January-September 2008.

Some 752,000 tons of the total volume of oil products was petrol, which is an increase of 8.1 percent from the same period in 2008. The wholesale price for one ton of А-92 gasoline in the internal market (VAT and transportation costs inclusive) is 670 manats and А-95 - 736 manats. According to the State Statistics Committee, Azpetrol received over 381,300 tons of gasoline and LUKoil - around 117,000 tons.

In January-September 2009, 565,800 tons of diesel fuel was sold to the domestic market, which is by 26.3 percent less compared to the same period in 2008. The wholesale cost of 1 ton of diesel fuel (VAT and transportation costs inclusive) is 485 manats. Azpetrol received roughly 183,000 tons of diesel fuel and LUKoil - roughly 65,100 tons, the state statistics committee reported. The Azerbaijani State Caspian Sea Shipping Company purchased 13,000 tons of diesel fuel.

In January-September of 2009, 243,400 tons of fuel oil was sold to the domestic market, which is 70.8 percent less than the figure in 2008. The wholesale price of 1 ton of М-40 fuel oil in Azerbaijan is 100 manats (including delivery and VAT). According to the state statistics committee, Azerenerji JSC received over 118,000 tons of fuel oil and the Heydar Aliyev Oil Refinery Plant - over 32,000 tons for further refinery.

A total of 276,100 tons of aviation kerosene was sold in this period, 30.5 percent less than in 2008. The price of aviation kerosene is 307 manats per ton (including delivery and VAT).

The sale of petroleum bitumen totaled 171,500 tons, an increase of 30.8 times from 2008. The wholesale price of 1 ton of bitumen BN 60/90 (VAT and transportation costs inclusive) is 160 manats.

In January-September, some 69,200 tons of LPG was sold to the interior market, which is by 1.4 percent less than the figure of 2008.

The other more than 717,300 tons of oil products were also sold, less by 3.8 percent than in January-September 2008.

2. Chemical complex

In Jan.-Sept. Azerkimya state-owned company (production of chemical products) produced 9 million cubic meters of nitrogen which is 23.4 percent less than the figure of the same period of 2008, Azerbaijan State Statistics Committee said.

The production of polyethylene, isopropyl alcohol and paintwork materials shrank decreased in Jan.-Sept. Chlorine oxide was not produced during in this period.

Production of major types of chemical products in Jan.-Sept. 2009 is as follows

3. Power engineering

In January-September, Azerenerji (Azerbaijan's largest energy producer) generated roughly 14 billion kilowatt hour of energy compared to 15.7 billion for the same period of 2008, the company said on Sept. 8.

Thermoelectric power stations accounted for 12.4 billion kilowatt hour and hydro power stations 1.6 billion.

In September, Azerenerji generated about 1.2 billion kilowatt hour of energy 1 billion of which accounted for thermoelectric power stations and 0.2 billion for hydro power stations.

In September, the planned power transfers continued with Russia, Iran and Georgia.