SOCAR Tries to Create Network in Europe, Sees Production Doubling by 2025

Azerbaijani potential continues to make headlines, as the Southern Gas Corridor is gaining ground in Brussels to become the number one alternative to Russian gas. Azerbaijan’s SOCAR is trying not simply to export gas, but to take an active role in Europe’s energy assets. 

Against this backdrop, Azerbaijani newspapers wrote about the cooperation between SOCAR, Italy’s Snam and Greece’s DESFA, claiming that Snam intends to acquire a stake in the Greek natural gas transmission system operator. The move, which is consistent with previous declarations, would give legitimacy to SOCAR’s plans to buy a 66% stake in DESFA. 

"We are ready for negotiations with European companies over the sale of 16 percent," SOCAR President Rovnag Abdullayev said on Friday.

Meanwhile, Baku released global forecasts, saying it sees the base price of oil in 2016-2019 at $50. 

This comes a day after, Abdullayev and other officials said the country could double gas production by 2025.

“There are great opportunities for bringing production volumes in Azerbaijan up to 20 billion cubic meters a year, excluding the gas injected into the reservoir in 2015, and up to 40 billion cubic meters in 2025. This will further enhance the role of Azerbaijan in the energy security of Europe," Abdullayev was quoted as saying. 

The country expects to produce 40 million tonnes of oil and 30 billion cubic meters (bcm) of gas in 2016, thus remaining on 2015 levels.  

In July 2015, Snam’s CEO Carlo Malacarne confirmed that there are TAP’s stakeholders willing to sell their shares to the Italian company, adding that a 20% interest would cost around 400 million euros.