SOCAR: Our new projects will make Azerbaijan one of alternative energy sources

Baku. 8 January. REPORT.AZ/ Global crises is a trial for entire production area from small economy to large transnational companies. Companies, substantially developed from economic viewpoint, distinguished for their high profitability, can provide their sustainability specially during economic crises.

Drop of oil price many times in the world market put a serious trial before oil-gas companies. Thus, as a result of fall in oil price, world's 46 oil companies suspended oil and gas megaprojects having total cost of 200 billion USD. Cost reduction problem in oil industry already has a large scale. In a condition, whereas price for one barrel of oil is below than 50 USD, projects, planned to be realized in the future, with total cost of about 1,5 trillion USD has already lost their profitability. At the same time, probability of realization of suspended such projects is very low. Therefore, oil companies try to reduce their costs on new projects by 20-30%. For example, future operations on formation of oil reserves in the volume of 20 billion barrels (it is more than all Mexican reserves) has been postponed.

Report was told at the State Oil Company of Azerbaijan Republic (SOCAR) as a response to survey on possible influence of economic crisis to the company: 'The processes, which  generally have occurred, made it necessary for Azerbaijan  to review again the projects carried out in the field of oil-gas industry. Thus, in regard with drop in oil price in the world market, last year SOCAR carried out several measures to optimize costs as well as for investments, gave preference to high profitable projects causing prompt benefit. On December 31, 2015, it was emphasized in the meeting, chaired by SOCAR President Rovnag Abdullayev, no problem is available or will be in financing of large projects having regional and global importance realized with participation of SOCAR.

It is firstly related with high income of all international projects financed by SOCAR: "These projects, which will cause profit to our country for millions of dollars in near future, will make Azerbaijan one of the alternative energy sources. Azerbaijan's not refusing large projects in the condition of suspension of megaprojects by many oil and gas companies of the world in the framework of anti-crisis measures shows that megaprojects, carried out in oil-gas industry by Azerbaijan distinguish for their high profitability for substantial development from economic viewpoint and successfully implemented executed even in lower limit of oil price".