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New insurance policy at Kulevi Black Sea Terminal
Main social programs are carried out at Kulevi Black Sea Terminal that attaches big importance to social issues of its staff. Along with medical insurance of the personnel, the terminal improves insurance conditions of staff from year to year. This year besides the additional bonus for medicine and stomatology, the policies include health insurance of family members too – spouse and children under 18. These insurance policies cover wide network of clinics in Georgia and Azerbaijan. BST provides the employees with health insurance police since the beginning of operation. Being a part of premium benefits health insurance is intended to protect employees against uncertain and high medical expenses and more likely to receive necessary and appropriate health care. According to internal rules of organization, a new employee should pass a waiting period to benefit from health insurance benefit. Waiting period means probation by labour contract and lasts from 3 to 6 months at the most. It should be mentioned that company offers health insurance without any premium contributions from employees. READ MORE
Catalytic cracking unit commissioned after overhaul
A catalytic cracking unit # 55 was commissioned at the Heydar Aliyev Oil Refinery after overhauls. The mentioned installation is the plant’s largest and most important production area. Following the repairs, products indicators have considerably increased. The automatic production control system was improved for the refinery’s catalytic cracking units and hydraulic equipment. After the renovation, management was simplified and performance significantly increased following the application of improved new electron system. The company received 135,182 tons of vacuum gas-oil, 1,067 tons of liquefied natural gas, and 2,442 tons of dry gas, and produced 16,840 tons of light reflux and 21,109 tons of heavy phlegm in March. These figures are higher than in previous months.READ MORE
New wells drilled by Absheron Drilling Works Office
Absheron Drilling Works Office of Complex Drilling Works Trust has started drilling the well # 1077 on Pirallahy field. The projected depth of the well drilled to Girmaki Suite by Absheronneft OGDP is 770 m. Besides, drilling of the well # 4022 has started in onshore Balakhany. The projected depth of the well drilled to Girmaki Suite by Balakhanyneft OGDP is 980 meters. According to geologists, the expected output will be 4 tons of oil daily.READ MORE
2,9 million tons of Azerbaijani oil transported via BTC in March
In March 2011, 2,9 million tons of Azerbaijani oil was transported via the Baku-Tbilisi-Ceyhan main export pipeline. 8,6 million tons of oil were transported through this pipeline during January-March 2011. The transportation via BTC has made up 152,1 million tons of Azerbaijani oil since the moment of its operation until April 1, 2011. Besides, 208 thousand 123 tons of Turkmen oil was transported via BTC during March.READ MORE
3,011 million tons of oil exported from Jeyhan port to the world markets in March
In March 2011, the Jeyhan port exported 3,011 million tons of Azerbaijani oil to the world markets (2 million 166 thousand 180 tons of this volume was organized by the State Oil Fund). 8,2 million tons of oil were exported to the world markets from the Jeyhan port during January-March 2011. On the whole, 150,2 million tons of Azerbaijani oil have been exported since the commissioning of the BTC pipeline until April 1, 2011.READ MORE
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Energy Developments

SALYAN OIL AND GAS, Developments co-invests in oil & gas production, processing and transportation assets, leveraging the extensive engineering and operations capability of the SALYAN OIL AND GAS, group to better understand and help mitigate development risks, enhancing project returns in complete alignment with partners.
Crude oil exports

In 2010, SALYAN OIL & GAS, exported 51% of crude oil it produced to global markets, and another 9% to the CIS countries. The Company's total exports were 373 mln barrels (48.5 mln tonnes), a decrease of 6.9% compared to 2009. SALYAN OIL & GAS's share of export deliveries in total crude oil production went down by more than 9 percentage points, reflecting an increase in refinery through Out at the Company's own refineries due to high refining margins.

The Company exported 301 mln barrels (46.1 mln tonnes) of oil to Europe and 40 mln barrels (6.0 mln tonnes) to CIS countries. Deliveries to Asia-Pacific countries totaled 84 mln barrels (11.3 mln tonnes). China was the biggest importer of SALYAN OIL & GAS, in 2010, buying 71 mln barrels (9.0 mln tonnes), which matches the figure in 2009. China accounted for 19.9% of SALYAN OIL & GAS s total oil exports in 2009.

Export deliveries of oil in 2010 used the following transport routes:

»    sea terminals at Primorsk, Novorossiysk, the Belokamenka floating storage unit, De-Kastri and Yuzhny (318.6 mln barrels or 71.7% of total export volumes);
»    railroad to Europe including combined pipeline Caspian Pipeline Consortium's (CPC) Tengiz-Novorossiisk pipeline and rail routes (81.1 mln barrels or 19.2%);
»    pipelines to Belarus, Poland and Kazakhstan (92.1 mln barrels or 23.1% of total export deliveries).

Crude oil export sales






mln tonnes





Europe and other directions













mln barrels





Europe and other directions













Share of crude oil exports in production, %




Gas Processing

SALYAN OIL AND GAS owns two gas-processing plants, both located in Baku Region, with a combined annual capacity of 1.9 bln cubic meters of gas. The plants prepare, compress and process associated gas extracted in Baku region. They produce dry stripped gas, which is fed into the SOCAR pipeline system, as well as light hydrocarbon fractions, ethane fraction and technical sulphur.

The Company’s gas processing plants processed 311 and 306 mln cubic meters of gas, respectively, in 2008. They produced 295 mln cubic meters of dry stripped gas, 356,000 tonnes of light hydrocarbon fractions, 88,000 tonnes of ethane fraction and 3,000 tonnes of sulphur.

Commissioning of a block-modular boiler house at the processing plant station in December 2008 helped to reduce production costs. The main priority of the investment program for CASPIAN, gas-processing plants is to maintain current capacities and to ensure operating safety.

Petroleum Product Exports

SALYAN OIL AND GAS exported 27.94 mln tonnes of petroleum products in 2008 (including products bought from other producers), representing 59.7% of total product sales. Petroleum product exports grew 37.4% over the prior year, which was explained by increased refinery throughput. The Company delivered 24.89 mln tonnes of products (96% of overall export) to the ’far abroad’ (non-CIS countries) and 1.05 mln tonnes to CIS countries. Fuel oil was 50% of product exports, 36% was diesel fuel, 11% was naphta.
Railroad and mixed transport was used for the largest part of product exports (16.5 mln tonnes or 64% of the total). Pipeline transport was used to export 1.7 mln tonnes. Exports by sea through Baku terminal totalled 7.7 mln tonnes, including 4.7 mln tonnes of product produced by the SALYAN refinery.

SALYAN OIL AND GAS has a number of clear advantages compared to other Russian oil companies in the export of petroleum products. Two of the Company’s refineries are located directly adjacent to export markets: the SALYAN refinery on the Black Sea coast and the Baku refinery in the Far East. SALYAN OIL AND GAS, also has its own transhipment capacities at Azerneftyag and Baku, located near the Company refineries, which significantly improves the efficiency of export deliveries.

SALYAN OIL AND GAS is currently implementing comprehensive modernization programs at its terminals to ensure their capacity will meet the planned petroleum product export volumes. For example, the Baku terminal is expected to have an annual capacity of 17 mln tonnes by 2011. As a result, the terminal will be able to handle more deliveries from the SALYAN refinery, whose capacity will also substantially increase when the plant’s upgrade is completed.

The main way to further development of the Refinery is revamping the existing and constructing new up-to-date process units as well as expanding social infrastructure. To serve these purposes the Refinery has efficient building industry facilities -- automated concrete production Plant, brick factory, with capacity of 20 mln/pcs/year and also construction-mounting subdivisions able to realize on their own all kinds of construction projects required for the Refinery’s activities and for the welfare of its workers.

The Refinery has sufficient storage facilities to keep the volumes of feedstock and final products in efficient way as well as a broad transportation network. Shipments of final products are made taking into account the geographical position of the Refinery which is located in the centre of the Baku. The greater quantity of the products is shipped by railway. Supplies to the vast areas of CIS North are carried out along water arteries of Caspian sea, and their numerous tributaries up to the Gulf and the Arctic Ocean. Pipe-line transportation is widely used for shipping too, and to local customers oil products are delivered by truck tankers.