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Caspian Oil & Gas Exhibition Welcomes Global Energy Giants, Puts Spotlight On Azerbaijan

By Nazrin Gadimova May 31, 2019

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Technology and equipment on display are mainly used in oil production and the transportation of fossil fuels, such as oil and gas storage systems, platforms and floating drilling rigs, pipe laying, and pipeline security systems.

Government officials and energy experts gathered in Baku this week for the 26th annual International Caspian Oil & Gas Exhibition and Conference, to highlight the growing significance of Azerbaijan and the broader Caspian region in global energy security.

“For 26 years, the exhibition has been gathering oil companies from all over the world. This indicates that the oil and gas resources of Azerbaijan is of great interest to foreign companies today and will be [of great interest] in the future,” President Ilham Aliyev said during his speech at the exhibition’s opening ceremony, according to a statement posted to the website of the president.

The four-day exhibition, which runs from May 29 through June 1, brought 290 companies –  mainly oil and gas enterprises and service providers – from 34 countries including the United States, France, Germany, Italy, the United Kingdom and Turkey. Roughly 25 percent of participant companies this year are newcomers, including those from Azerbaijan, China, Kazakhstan, Turkey, Monaco, the Netherlands and India. Big-name attendees include BP, SOCAR, Equinor, Halliburton, Schlumberger and Saipem.

Technology and equipment on display are mainly used in oil production and the transportation of fossil fuels, such as oil and gas storage systems, platforms and floating drilling rigs, pipe laying, and pipeline security systems.

Meanwhile, Azerbaijan is under a big spotlight within the framework of the exhibition, as global energy companies are focusing on the Caspian country’s well-developed oil and gas industry as the Southern Gas Corridor, which brings Caspian Sea gas to Turkey and Europe, is nearing completion. The corridor is technically comprised of three pipelines that traverse five countries before reaching southern Italy.

“Azerbaijan is more prosperous and connected to the global economy than at any time in its history. Oil and gas production from Azerbaijan continues to increase stability in world energy markets, including through the Southern Gas Corridor,” said U.S. President Donald Trump in a letter addressed to President Aliyev, according to reports by Azertag.

“Azerbaijan can play an even greater leadership role by partnering with other potential suppliers such as Turkmenistan and countries in the Eastern Mediterranean,” the letter continued. “The economic success of Azerbaijan will help bring stability to the entire region.”

Azerbaijan ranks 18 worldwide in terms of proved crude oil reserves according to data compiled by the U.S. government, or about seven billion barrels. Iran and Russia, also in the Caspian region, rank four and eight, respectively, while Kazakhstan stands at number 11 and Turkmenistan at 43. In 2018, around 38.7 million tons of oil was produced in Azerbaijan, remaining unchanged from the previous year.

The same data identifies Azerbaijan as the world’s 25th largest natural gas reserves, while Russia ranks number one, followed by Iran at number two. Azerbaijan’s largest gas and condensate field, Shah Deniz, contains 1.2 trillion cubic meters of natural gas. Ten billion cubic meters (bcm) per year will be exported via the Southern Gas Corridor to Europe, while another six bcm is already making its way to Turkey.

Some analysts expect Turkmenistan, which is located on the eastern coast of the Caspian Sea and home to the world’s fifth largest proved gas reserves, to eventually connect its resources to the corridor, via the Trans-Caspian underwater gas pipeline.