Country report
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70 Pages

Azerbaijan upstream summary


Azerbaijan upstream summary

Report summary

Upstream industry dominated by two offshore megaprojects - The BP-operated Azeri Chirag Guneshli (ACG) oil field and Shah Deniz gas-condensate field account for the majority of production and investment. ACG focus: stabilising production and securing a PSC extension - The six-billion-barrel ACG oil field peaked at 823,000 b/d in 2010, with output since declining to about 600,000 b/d. The current PSC is due to expire in 2024 and talks on an extension are underway.Shah Deniz focus: Phase Two ...

What's included?

This report includes 2 file(s)

  • Country Overview PDF - 1.89 MB 70 Pages, 34 Tables, 26 Figures
  • Country Overview XLS - 1.20 MB

Description

Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key upstream issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream summary is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Key facts
  • Location maps
  • Key companies
    • Key projects
    • Other projects
  • Geology
    • Introduction
    • South Caspian basin
      • Structural (tectonic) elements
      • Absheron province
      • Gobustan province
      • Lower Kura province and Baku Archipelago
    • South Caspian deepwater basin
    • Stratigraphy
    • Reservoirs and source rocks
    • North Caucasus-Mangyshlak basin
  • Exploration
    • Licensing
    • Licensing and IOC activity
      • Licensing since 1991
      • 1991
      • 1992
      • 1993
      • 1994
      • 1995
      • 1996
      • 1997
      • 1998
      • 1999
      • 2000
      • 2001
      • 2002
      • 2003
      • 2004
      • 2005
      • 2006
      • 2007
      • 2008
      • 2009
      • 2010
      • 2011
      • 2012
      • 2013
      • 2014
      • 2015
      • 2016
    • Drilling
      • Drilling activity
    • SOCAR
      • Future drilling plans
    • Offshore IOC activity
      • Offshore PSC drilling commitments
      • Offshore drilling challenges
    • Active IOC exploration licences (offshore)
      • Absheron (Deep Water)
      • Bahar 2
      • Dan Ulduzu-Ashrafi
      • Shafag Asiman
      • Shallow Water Absheron Peninsula (SWAP)
    • Potential IOC exploration licences (offshore)
      • D230
    • Other IOC exploration licences (offshore)
      • Alov
      • Lerik
    • Semi-submersible rigs
      • Active semi-submersible rigs
      • New-build semi-submersible rigs
    • Jack-up rig
      • Saturn (formerly Trident 20 / Gurtulush)
    • IOC exploration licences (onshore)
  • Reserves and resources
    • Oil and gas reserve classification
      • Soviet/Azerbaijani reserve classification system
      • Comparison of western and Soviet/Azerbaijani oil reserve estimates
      • Comparison of western and Soviet/Azerbaijani gas reserve estimates
      • Wood Mackenzie methodology
    • Commercial reserves by basin
    • Technical reserves by basin
    • Commercial reserves by sector
      • Onshore
      • Offshore
    • Commercial reserves by report
  • Production
    • Liquids
      • Historical liquids production
      • Future liquids production
    • Gas
      • Historical gas production
      • Future gas production
      • Gas markets
  • Infrastructure
    • Introduction
      • Overview
      • Oil infrastructure
      • Oil transit
      • Gas infrastructure
    • Oil infrastructure
    • International pipelines
      • Baku-Tbilisi-Ceyhan (BTC) pipeline
      • Northern Route Export Pipeline (to Novorossiisk, Russia)
      • Western Route Export Pipeline (Baku-Supsa)
    • Proposed oil pipelines
    • Transit of Central Asian crude (via BTC)
      • Turkmenistan (current)
      • Kazakhstan (previous) - Tengizchevroil (TCO)
      • Kazakhstan (potential) - Kashagan Contract Area
    • Ports and terminals
      • Dubendi (Baku port)
      • Sangachal
      • Storage facilities
    • Rail infrastructure
      • Baku-Tbilisi-Kars railway
    • Refineries
    • Gas infrastructure
    • International pipelines
      • Southern Gas Corridor
      • Legacy pipelines to/from Iran
      • Legacy pipelines to Georgia
      • Legacy pipeline to/from Russia
      • Legacy pipelines via Armenia (inactive)
    • Proposed gas pipelines
      • Trans-Caspian Gas Pipeline (TCP)
      • Azerbaijan-Iran
      • Turkey-Nakhchivan
    • Gas processing / gas-feed facilities
      • Existing facilities
      • Future facilities
    • Underground gas storage (UGS)
  • Costs
    • Introduction
    • Capital costs
      • Capital expenditure by location
    • Operating costs
      • Operating expenditure by location
  • Policy and regulation
    • Key legislation
      • Subsurface Code (March 1977)
      • Foreign Investment Law (January 1992)
      • Law on Gas Supply (May 1998)
      • Energy Law (February 1999)
      • Presidential Decree No. 150 (December 2004) and Internal Regulation of the Ministry of Industry and Energy of the Azerbaijan Republic (May 2006)
      • Law on oil and gas export activities
    • Regulatory body
      • Gas regulation
      • New Customs Code
      • State Oil Fund (SOFAZ)
    • State oil company
      • Southern Gas Corridor Company (SGC)
    • State participation
    • International boundaries
    • Legal status of the Caspian Sea
      • Overview
      • North Caspian Sea
      • South Caspian Sea
    • Licensing
  • Fiscal terms
    • Overview
    • Upstream
    • Midstream / downstream
    • Current fiscal terms
    • Production Sharing Contracts (PSCs)
      • State equity
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty and other production taxes
      • Local market oil obligation (LMO)
      • Cost recovery
      • Profit sharing
      • Contractor revenue entitlement
      • Product pricing
      • Corporate (or petroleum) income tax (CIT)
      • Additional profit taxes
      • Fiscal/Contractual ring fences
      • Dividend withholding tax
      • Sample Cash Flow
      • Marginal government take calculation
    • Historical background
      • Joint Venture contracts (JVs)
      • PSCs

In this report there are 60 tables or charts, including:

  • Executive summary
    • Liquids production by field
    • Gas production by key fields
  • Key facts
    • Key facts: Table 1
  • Location maps
    • Location maps: Image 1
  • Key companies
    • Remaining Commercial and Technical Reserves at 01/01/2016
    • Liquids and Gas Production 2016
  • Geology
    • Azerbaijan: sedimentary basins and geological trends
    • South Caspian basin: tectonic elements
    • Simplified tertiary stratigraphy
    • Absheron province: Productive Sequence litho-stratigraphic units
    • Middle and Upper Productive Sequence: local stratigraphic nomenclature
  • Exploration
    • Exploration: Table 1
    • Block awards and relinquishments
    • Active licences: exploration and production
  • Reserves and resources
    • Reserves and resources: Table 1
    • Reserves and resources: Table 2
    • Remaining and produced commercial reserves at 01/01/2016 (p+p)
    • Reserves and resources: Table 3
    • Commercial liquid reserves by region at 01/01/2016 (p+p)
    • Commercial gas reserves by region at 01/01/2016 (p+p)
    • Reserves and resources: Table 4
  • Production
    • Production: Table 1
    • Production: Table 2
    • Liquids production by sector
    • Production: Table 3
    • Production: Table 4
    • Liquids production by basin
    • Production: Table 5
    • Production: Table 6
    • Liquids production by field
    • Production: Table 7
    • Production: Table 8
    • Gas production by sector
    • Production: Table 9
    • Production: Table 10
    • Gas production by basin
    • Production: Table 11
    • Production: Table 12
    • Gas production by key fields
  • Infrastructure
    • Infrastructure: Table 1
    • Azerbaijan: oil infrastructure
    • Azerbaijan: rail network
    • Infrastructure: Table 2
    • Infrastructure: Table 3
    • Azerbaijan: gas infrastructure
    • Infrastructure: Table 4
  • Costs
    • Costs: Table 1
    • Costs: Table 2
    • Costs: Table 3
    • Costs: Table 4
  • Policy and regulation
    • Map of agreed Russia-Kazakh line and Azerbaijan proposed area
    • Map of agreed Russia-Kazakh line and Turkmenistan proposed area
  • Fiscal terms
    • Fiscal terms: Table 1
    • Fiscal terms: Table 2
    • Fiscal terms: Table 3
    • Fiscal terms: Table 4
    • Fiscal terms: Table 5
    • Fiscal terms: Table 6
    • Fiscal terms: Table 7
    • GEM models
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