Russian Rosnedra reported that the auction for the right to use bowels of earth on the Caspian section, Kalmykia, to explore and extract hydrocarbons failed to take place, reported the Kalmykia Republic Department for Use of Bowels of Earth.
The reason of this decision is that only SOCAR Rus, Russian daughter company of State Oil Company of Azerbaijan (SOCAR), has applied for the auction.
SOCAR has never been interested in the bowels of earth in other countries, preferring investing capital into foreign oil refining projects.
According to estimates of Shell, Tatneft and LUKoil operating in Kalmykia, Kalmykia can have significant hydrocarbon resources on the depth of over 5000 meters. Oil could be transported with low costs through the port in Makhachkala or by tankers to Baku and then pumped via Baku-Tbilisi-Ceyhan oil pipeline. In the future it is possible to deliver oil via the LUKoil's oil pipeline, which will connect the Caspian offshore fields with the export oil pipeline of the Caspian Pipeline Consortium, which transports oil from Kazakhstan to Novorossiysk, reported http://rusenergy.ru.
* The area of the Caspian section, to which SOCAR Rus claimed, totals 100.4 sq.km., the forecasted resources of C1 category - 4,697 million tons of oil. The starting fee for the right to use bowels of earth was 516.5 million rubles.-0-
Economics
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Temporary suspension of gas supplies from Azerbaijan to Serbia will be avoided, Serbian President Aleksandar Vucic announced on Sunday.
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On January 11, Serbian President Aleksandar Vučić announced that Azerbaijan had notified Serbia about the suspension of daily gas supplies amounting to 1.7 million cubic meters due to technical problems at the Shah Deniz field.
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The Turkish company Aksa Doğalgaz, part of Kazancı Holding, has announced the completion of the contractual process to purchase the gas distribution companies Bursagaz and Kayserigaz. These companies have been operating under SOCAR Türkiye Energy AS (STEAS) since 2019, according to Aksa Doğalgaz.
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Azerbaijan's Cabinet of Ministers has introduced new regulations establishing the minimum royalties for authors of state-commissioned films, aiming to promote creative works reflecting the country's national identity and cultural values.
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