Azernews.Az

By Gunay Camal

Gordon Birrell, former BP Regional President for Azerbaijan, Georgia and Turkey has announced that so far BP and its partners invested more than $15 billion in the Shah Deniz 2 project in Azerbaijan and Georgia.

Birrell, talking to reporters in Baku on March 29, said that BP expects the final expenditures for the Shah Deniz Stage 2 project to be lower than those specified in the final investment decision, Trend reported.

The cost of the Shah Deniz Stage 2 is estimated at $28 billion.

“It is too early to talk about a specific amount of expenditures, as there are still a number of expensive works,” noted Birrell, adding that the company expects the project to be ahead of both the technical and investment schedules.

Being one of the main components of the large-scale Southern Gas Corridor project, Shah Deniz 2 is expected to add a further 16 bcm per year of gas production to the approximately 9 bcm per year produced by Shah Deniz Stage 1.

Reserves of the field are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensate. The gas is projected to be exported to Georgia, Turkey and European markets through expansion of the South Caucasus Pipeline and the construction of the Trans Anatolian Natural Gas Pipeline and the Trans Adriatic Pipeline.

He further said that BP plans to release the gas from the Shah Deniz field into the expanded system of the South Caucasus Pipeline in test mode in late 2017.

The Khankendi vessel for underwater work, which is now being tested, will be sent to Shah Deniz in the end of 2Q 2017 to operate there, according to him.

The gas will be sent in the test mode from the Shah Deniz field into the South Caucasus Pipeline to examine the system.

Birrell added that this will be done with an aim of delivering the gas to Turkey via the Trans Anatolian Natural Gas Pipeline (TANAP) in the second half of 2018 and to Europe via the Trans Adriatic Pipeline (TAP) in 2020.

The work on the Shah Deniz 2 project is completed by more than 90 percent. Twelve wells have already been drilled as part of the Shah Deniz Stage 2, which is sufficient to start gas production and export, according to him. Three of the 12 wells are ready for production.

Birrell noted that work on expansion of the South Caucasus Pipeline in Azerbaijan and Georgia is completed by more than 93 percent.

Speaking about the oil production at the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields, Birrell said that the company is planning to carry out several works to stabilize oil output.

Noting that maintaining the stable level of production at the block is the company’s main task, he said that firstly, the company plans to achieve effective drilling performance.

“BP has seven platforms at the ACG block. With their help, the company wants to get high, effective indicators on drilling of wells in order to quickly reach new layers and start oil production from there,” added Birrell.

He stressed that BP intends to ensure uninterrupted and reliable work of oil production facilities.

“In 2017, platforms at the ACG block won’t be stopped for preventive works,” said Birrell, adding that one the factors of oil production stabilization will be bringing the best specialists to Azerbaijan.

BP Azerbaijan is the operator of the block of Azeri-Chirag-Gunashli offshore oil and gas fields, as well as Shah Deniz gas and condensate field.

In early March, British BP announced the appointment of Gary Jones as the new Regional President for Azerbaijan, Georgia and Turkey (AGT). Jones will take his office from April 2 and be based in Baku, Azerbaijan.

Gordon Birrell has successfully led BP’s regional business since November 2012. Birrell’s new role will be BP’s Chief Operating Officer, Production, Transformation and Carbon based in BP’s headquarters in London.

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