Rosneft keen to increase its presence in Azerbaijan

According to local reports, Russian crude producer Rosneft wants to increase its presence in Azerbaijan. Vitaliy Baylarbayov, Deputy Vice President of SOCAR, told press that Rosneft may seek a stake in the Absheron gas project and could use the Baku-Tbilisi-Ceyhan (BTC) pipeline for oil shipments to Europe.

“Rosneft has an interest and is considering participation in the Absheron project,” said Baylarbayov. “If they finally make this decision, we would review it and I am sure we would make a positive decision.” The Absheron gas field is located in the Caspian Sea, around 100 km southeast of Baku and 25 km northeast of the Shah Deniz field. SOCAR and Total each hold 40% in the project and the remaining 20% is held by GDF Suez. Gas production at Absheron is expected to start in 2020 – 2021.

Baylarbayov said that Rosneft could additionally follow in the footsteps of Russia’s Lukoil and use the Baku-Tbilisi-Ceyhan (BTC) pipeline for its oil exports to Europe. The BTC pipeline is a 1768 km crude oil pipeline, running from the Azeri-Chirag-Guneshli oil field in the Caspian Sea to the Mediterranean Sea. The pipeline connects Baku with Ceyhan, a port on the south-eastern Mediterranean coast of Turkey.

“Rosneft also has an interest in shipping its oil via the BTC,” Baylarbayov stated, further commenting that SOCAR was interested in participating in projects with Rosneft in Russia and other countries. Rosneft and SOCAR signed a joint-venture agreement in May for oil and gas exploration and production projects in Azerbaijan and Russia, crude swap operations and joint use of infrastructure.

Edited from various sources by Rosalie Starling

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