Azernews.Az

Friday March 29 2024

BP: Shah Deniz Stage 2 project is over 92% complete

10 May 2017 17:07 (UTC+04:00)
BP: Shah Deniz Stage 2 project is over 92% complete

By Sara Israfilbayova

The Azeri-Chirag-Guneshli field continued to safely and reliably deliver stable production in the first quarter of 2017, BP Azerbaijan reported on May 10.

Total ACG production for the quarter was on average 581,000 barrels per day (b/d) (over 52 million barrels or over 7 million tonnes in total) from the Chirag (55,000 b/d), Central Azeri (124,000 b/d), West Azeri (112,000 b/d), East Azeri (75,000 b/d), Deepwater Gunashli (121,000 b/d) and West Chirag (94,000 b/d) platforms.

At the end of the first quarter, 107 oil wells were producing, while 48 wells were used for gas or water injection.

In the first quarter of 2017, ACG delivered an average of 12.1 million cubic metres per day of ACG associated gas to SOCAR (1.1 billion cubic metres in total), primarily at the Sangachal Terminal but also to SOCAR’s Oil Rocks facility. The remainder of the associated gas produced was re-injected for reservoir pressure maintenance.

In the first quarter of 2017, the project shareholders spent approximately $111 million in operating expenditure and about $304 million in capital expenditure on ACG activities.

ACG participating interests are: BP (35.8 per cent), SOCAR (11.6 per cent), Chevron (11.3 per cent), INPEX (11 per cent), Statoil (8.6 per cent), ExxonMobil (8 per cent), TPAO (6.8 per cent), ITOCHU (4.3 per cent), ONGC Videsh Limited (OVL) (2.7 per cent).

In the first quarter of 2017, the Shah Deniz field continued to provide deliveries of gas to markets in Azerbaijan (to SOCAR), Georgia (to GOGC), Turkey (to BOTAS) and to BTC Company in multiple locations.

During the quarter, the field produced about 2.4 billion standard cubic metres (bcm) of gas and 0.6 million tonnes (about 4.6 million barrels) of condensate.

The existing Shah Deniz facilities’ production capacity is currently 30.0 million standard cubic metres of gas per day or around 10.9bcma.

Shah Deniz participating interests are: BP (operator – 28.8 per cent), AzSD (10.0 per cent), SGC Upstream (6.7 per cent), Petronas (15.5 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (19 per cent).

In the first three months of 2017, Shah Deniz spent approximately $113 million in operating expenditure and about $835 million in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project.

As for implementation of the project Shah Deniz Stage 2, the project is now over 92% complete in terms of engineering, procurement and construction, and remains on target for first gas from Shah Deniz Stage 2 in 2018.

Project activities continue at all offshore and onshore sites and fabrication yards of the country including the Sangachal Terminal, ATA (AMEC/Tekfen/Azfen) yard near Baku, Baku Deepwater Jackets Factory (BDJF) and along the pipeline route.

In March, a significant milestone was achieved in the project with the sail away of the jacket for the second of the Shah Deniz Stage 2 platforms.

The construction and commissioning of the subsea construction vessel (SCV) “Khankendi” are progressing well at the Baku Shipyard. The vessel’s 900-tonne main crane was recently successfully load tested. In summer 2017, the vessel will sail away from the shipyard quay for sea trials in the Caspian Sea which is a significant milestone on SD2 project delivery.

At the ATA yard, construction of both Shah Deniz 2 platform topsides units is complete and commissioning activities are well underway. The plan is to sail away these decks for offshore installation in the summer of 2017.

The Sangachal terminal – already one of the world's largest oil and gas terminals – is progressing well with its expansion plans in order to be able to process the additional gas volumes.

At the peak of project activities, over 24,000 people were involved in construction works across all main contracts in Azerbaijan and over 80% of them were Azerbaijani nationals.

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.

---

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more