Azernews.Az

The daily gas production from Shah Deniz offshore gas condensate field in the Azerbaijani sector of the Caspian Sea currently stands at 27.3 million cubic meters, a source in oil and gas market told Trend news agency.

According to the source, the production in the field is carried out from four wells.

"The total volume of production from the four wells in the field reaches 27.3 million cubic meters per day. The fifth well is currently under renovation," the source said.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The contract on development of the Shah Deniz field was signed on June 4, 1996. Shah Deniz participating interests are: ВР (operator - 25.5%), StatoilHydro (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%). Gas production from the field began in December 2006. Gas is transported to Georgia and Turkey through the South Caucasus Pipeline. Azerbaijan also purchases the fuel.

Peak production at the field within the first stage of the development is expected to hit nine billion cubic meters of gas and 50,000 barrels of condensate.

About 16 billion cubic meters of gas a year will be additionally extracted within the second stage of Shah Deniz development. Around 6 billion will be delivered to Turkey and 10 billion to Europe.