Azernews.Az

By Amina Nazarli

Some 5.4 billion cubic meters of gas and 1.3 million tons of condensate (nearly 10 million Barrels) were produced at Azerbaijan’s Shah Deniz gas and condensate field in the first quarter of 2016, as compared to 5.2 billion cubic meters of gas and 1.2 million tons of condensate in the same period of 2015, said BP report on the results of the company’s activity in 1H2016 in Azerbaijan, issued on August 22.

The report says that currently, the average daily volume of gas output at the field is 29.5 million cubic meters (about 10.8 billion cubic meters per year).

In 1H2016, Shah Deniz field’s operating expenditures totaled $225 million and capital expenditures – about $1.87 billion, the majority of which was associated with the Shah Deniz Stage 2 project.

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.

The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.

The second stage of Shah Deniz field development started in December 2013. The total amount of investments provided by the operating consortium will be approximately $28 billion, excluding the construction of the export pipeline systems.

In the first half of 2016, BP delivered an average of 7.2 million cubic meters per day (or 1.31 billion cubic meters in total) of associated gas to the State Oil Company of Azerbaijan (SOCAR).

BP, which is the operator of the Azeri-Chirag-Guneshli block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, delivered 3.2 billion cubic meters of associated gas to SOCAR in 2015. Fifteen oil wells and two water-injection wells were drilled at the Azeri-Chirag- Guneshli field last year.

The contract for developing the ACG field was signed in 1994. The proven oil reserve of the block nears 1 billion tons.

The shareholders of the project are BP - 35.8 percent, Chevron - 11.3 percent, Inpex - 11 percent, AzACG - 11.6 percent, Statoil - 8.6 percent, Exxon - 8 percent, TPAO - 6.8 percent, Itocu - 4.3 percent and ONGC - 2.7 percent.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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