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State Oil Company of the Azerbaijan Republic (SOCAR) in brief

Producing oil and gas for the world

Established in 1992 from the Azerineft State Concern and Azerneftkimya Production Association, the State Oil Company of the Azerbaijan Republic (SOCAR) received the mandate as national oil company to :

 – Improve the management structure of the oil and gas industry

 – Develop the energy industry

In this role, SOCAR is a fully integrated upstreamdownstream company covering:

 – Exploration and production with three production divisions

 – Processing and transportation with a fleet of crude oil tankers

 – Refining and marketing oil, gas and condensate products with two refineries

 – Petrochemicals

 – Deepwater offshore platforms shipyard

In addition to its leading role in Azerbaijan to secure the energy supply and the local development of the energy sector, SOCAR is acting on international markets in exporting and in taking working interests in joint venture.

To fulfill its mission, SOCAR intends to deploy its business model of vertically integrated international energy company resting upon advanced experience on operation efficiency, social and environmental responsibility.

On the upstream side, SOCAR‘s main oil and gas exploration and production activities are concentrated on:

 – Absheron in joint venture with the french companies TOTAL (40%) and GDF Suez (20%) to develop a field located in the Caspian Sea, 100 km off Baku (depth: 500 meters)

 – Bulla Deniz Area 2 on the far southeast side of the Bulla-Deniz field by a depth of 6505 meters where preparations are being made for well completion.

 – Umid in the deepwater of the Caspian where a giant natural gas and condensate field was discovered in 2010

 – Azeri and Chirag deepwater Gunashli fields in the Caspian Sea where 11 companies are sharing interests (Azerbaijan (ACG) Limited – 11.6461 %, BP – 35.7828 %, Statoil- 8.5633%, INPEX-10.9644%, Turkish Petrol-6.75%, ExxonMobil– 8.0006%, ITOCU Oil Exploration– 4.2986%, Chevron Texaco – 11.2729%, Amerada Hess – 2.7213%)

 – Shah Deniz is one of the most important field in the Caspian Sea with 7 companies involved (Statoil– 26%, BP – 25%, SOCAR – 10%, LUKAcip – 10%, NİKO – 10%, Total – 10%, TPAO – 9%) where BP is the operator.

On the downstream side, SOCAR operates two refineries, the Azerneftyagh Oil Refinery and the Heydar Aliyev Baku Oil Refinery and two petrochemical subsidiaries:

 – Azerikimya PU to produce Azerikimya” produced 53,500 tons of polyethylene, 28,500 tons of propylene, 21,500 tons of butylene-butadiene cut, 51,800 tons of pyrolysis condensate, 10,500 tons of isopropyl alcohol, 3,300 tons of propylene oxide, 7,100 tons of alkali, and 2,700 tons of liquid chlorine. with its own chemical engineering institute.

 – Petkim in joint venture with and under the operatorship of the Turkish TPAO to produce low-density polyethylene, high-density polyethylene, polypropylene, polivinil chloride, ethylene glycol, purified acid, aromatic hydrocarbons,ethylenepropylene, chlorine alkali, vinyl chloride monomer, plastic works and phthalic anhydride.

Socar Key Figures

 – 2011 Revenues: $10,4 billion

 – 2010 Revenues: $7,07 billion

 – 2009 Revenues: $5,37 billion

 – 2011 Earnings: $1,51 billion

 – 2010 Earnings: $1,58 billion

 – 2009 Earnings: $1,75 billion

 – 2011 Capital Expenditure: $3,12 billion

 – 2010 Capital Expenditure: $2,15 billion

Socar Projects and Business Highlights

In respect with the significant amount of resources still to be developed in Azerbaijan, SOCAR’s strategy will continue in the same way to maximize the profit from the local resources around its fully integrated upstreamdownstream business model.

Compared with other national oil companies, SOCAR goes a step further, on the Chinese or Russian model, with its own engineering companies and shipyards.

In this context, SOCAR major projects are:

 – Upstream: $25 billion Shah Deniz gas field development phase 2

 – Midstream: $2 billion Trans Adriatic Pipeline to export the natural gas from Shah Deniz to South Europe

 – Downstream: $15 billion Baku Refinery and Petrochemical complex for 2018 and the Aegean Refinery in joint venture with Turcas to become the largest refinery and petrochemical complex in Turkey with a capacity of 10 million tons of crude oil per year in 2015.

 – Shipyard: Construction of a new shipyard in joint venture with the Singaporean Keppel Fels to take 10ù of the new entity to build the platforms and the fleet of vessels required to maintain the actual and coming infrastructures.

Being well diversified between oil and gas and condensate products and highly integrated from the upstream to the downstream and petrochemical up the engineering and shipyard facilities, SOCAR holds in hands all the leviers to drive its local growth toward a regional market leadership in south central Europe.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

1 Comment to “State Oil Company of the Azerbaijan Republic (SOCAR) in brief”

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