Expenses on country’s significant energy projects revealed
By Sara Israfilbayova
BP-Azerbaijan revealed expenses spent on Azerbaijan’s significant energy projects during the first half of the current year.
Shah Deniz
The Shah Deniz consortium spent $1.048 billion on the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea during the reporting period.
BP-Azerbaijan reported that more than $250 million of this
amount fell on the operating expenses, approximately $798 million –
on capital expenditures.
The total expenses for Shah Deniz in the annual comparison
decreased by 44 percent, operating expenses increased by 0.40
percent, while capital expenditures decreased by 51 percent.
A contract for development of the Shah Deniz offshore field was
signed on June 4, 1996.
Shah Deniz field’s reserves are estimated at 1.2 trillion cubic
meters of gas.
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).
Baku-Tbilisi-Ceyhan
BTC Co. spent $74 million on activities on the main export pipeline Baku-Tbilisi-Ceyhan (BTC). Operating expenses for the first half of the year amounted to about $61 million, capital expenditures - about $13 million.
Operating expenses in the annual comparison decreased by 4.7 percent, capital expenditures increased by 30 percent.
During the period of operation from June 2006, 399 million tons of crude oil (2.99 billion barrels) were transported via BTC as of the end of the first half of 2018, which was loaded into 3,916 tankers in Ceyhan and sent to the world market.
In the first half of 2018, BTC exported over 17 million tons
(125 million barrels) of crude oil.
On July 13, 2006, the solemn opening ceremony of the largest energy
project of the 21st century - the main export pipeline
Baku-Tbilisi-Ceyhan was held in Ceyhan.
On the construction of the pipeline, with a total length of 1,774 km from the Sangachal terminal to the Mediterranean port of Turkey Ceyhan, was spent $4 billion.
So far, BTC pipeline, the pumping capacity of which is 1.2 million barrels per day, has had strong safety and operational performance. Its efficiency and operational reliability has increased from 75 percent at the start up to the current level of 99.9 percent.
The shareholders of BTC Co, which was established on 1 August 2002 for the implementation of the project are: BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), TPAO (6,53 percent), Eni (5 percent), Total (5 percent), Itochu (3.4 percent), Inpex (2.5 percent), ExxonMobil (2.5 percent) and ONGC (2.36 percent).
Azeri-Chirag-Gunashli
The Azerbaijan International Operating Company (AIOC) spent $788 million to develop the block of Azeri-Chirag-Guneshli (ACG) fields located in the Azerbaijani sector of the Caspian Sea.
Operating expenses for the ACG project amounted to approximately $236 million, capital expenditures $552 million. In the first half of the year, operating expenses for the project increased by 2.6 percent year-on-year, capital expenditures decreased by 8 percent.
Proven oil reserves of ACG are estimated at 1.2 billion tons,
while gas reserves reach 350 billion cubic meters.
A contract for development of ACG block of oil and gas fields was
signed in 1994 for 30 years.
Thirteen companies from eight countries (Azerbaijan, the U.S., Great Britain, Russia, Turkey, Norway, Japan, Saudi Arabia) have participated in signing of the “Contract of the Century”.
The agreement will cover the development of the field until 2050 and will add significant resource development potential. The document specifies the key commercial terms for the future development of the ACG field and enables the parties to conclude negotiations and finalize fully-termed agreements in the next few months.
Shareholders of the ACG development include BP with 30.37 percent, AzACG - 25 percent, Chevron – 9.57 percent, Inpex – 9.31 percent, Equinor – 7.27 percent, ExxonMobil – 6.79 percent, TPAO- 5.73 percent, Itochu – 3.65 percent, ONGC Videsh Ltd. (OVL) – 2.31 percent.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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