SOCAR: Azerbaijan could double gas production by 2025
By Aynur Karimova
Energy-rich Azerbaijan is capable of doubling its gas production by 2025, thanks to its rich reserves and ongoing projects.
This was noted in an article by the President of Azerbaijan's state energy giant SOCAR, Rovnag Abdullayev, published in the official press on September 21.
The Azerbaijani sector of the Caspian Sea is rich in gas condensate, and SOCAR continually seeks new methods to exploit these reserves.
"The measures taken on existing projects and the potential of prospective structures give rise to optimistic forecasts," he said. "There are great opportunities for bringing production volumes in Azerbaijan up to 20 billion cubic meters a year, excluding the gas injected into the reservoir in 2015, and up to 40 billion cubic meters in 2025. This will further enhance the role of Azerbaijan in the energy security of Europe," wrote Abdullayev.
Abdullayev also noted that SOCAR supports the initiatives of European countries, like the Balkan states, to create interconnectors and pipelines to link to the $45-billion Southern Gas Corridor.
“We fully support these initiatives and keep them in sight,” he added.
The Southern Gas Corridor is a priority energy project for the EU. It envisages the transportation of gas from the Caspian Sea region to European countries through Georgia and Turkey.
At its initial stage, the gas is to be produced as part of Stage 2 of Azerbaijan’s Shah Deniz field, which is considered as the main source for Southern Gas Corridor project. Other sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz field, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian and Trans-Adriatic pipelines.
Azerbaijan exports 390 mln. tons of oil
Meanwhile, SOCAR First Vice-President Khoshbakht Yusifzade said that Azerbaijan exported over 390 million tons of oil to world markets from 1997 until September 1, 2015.
The Baku-Tbilisi-Ceyhan pipeline exported 283 million tons of oil, while the Baku-Supsa carried 74 million tons and Baku-Novorossiysk 12 million tons of oil. Another 21 million tons of oil was exported via railway through Georgia.
Yusifzade also noted that Azerbaijan produced 27.8 million tons of oil and 19 billion cubic meters of gas in January-August 2015 and SOCAR alone accounted for 5.5 million tons of oil and 4.6 million cubic meters of gas.
This is remarkable considered 42 million tons of oil and 29.6 billion cubic meters of gas was produced in Azerbaijan throughout all of 2014, while SOCAR itself accounted for 8.3 million tons of oil and 7.2 billion cubic meters of gas in 2014.
He went on to add that over 64 billion cubic meters of gas was produced at Azerbaijan’s giant Shah Deniz field in the Caspian Sea from the start of the field’s development in December 2004 until September 1, 2015.
“The condensate production at Shah Deniz field stood at 16.3 million tons during the reported period,” Yusifzade said.
Yusifzade further wrote that to date, the total volume of Azerbaijani gas export to Turkey is 35.4 billion cubic meters, while 4.7 billion cubic meters is exported to Georgia.
The volume of gas and condensate production at the Shah Deniz field totaled 5.2 billion cubic meters and 1.2 million tons (around 9.8 million barrels), respectively, in the first half of 2015, compared to 4.75 billion cubic meters of gas and 1.12 million tons of condensate in the same period of 2014.
The contract for the development of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserves hold an estimated at 1.2 trillion cubic meters of gas.
Yusifzade also said that the volume of oil produced from Azeri-Chirag-Gunashli block of oil and gas fields in the Azerbaijani sector of the Caspian Sea stood at 375.5 million tons from November 1997 to September 1, 2015.
“The volume of associated gas produced at ACG stood at 115.5 billion cubic meters,” said the article.
Over 85,000 tons of oil and 35 million cubic meters of gas are produced in the block of fields per day, according to Yusifzade.
SOCAR’s first vice-president added that 87 wells operate at the ACG fields.
Yusifzade further wrote in his article that 20,900 tons of oil was produced at ACG in the first eight months of 2015.
The contract for the development of ACG field was signed in 1994. The volume of the proven oil reserves of the block nears 1 billion tons.
It is expected that in 2016 Azerbaijan will maintain the oil and gas production volumes at the level of 2015. It is planned to produce 40 million tons of oil and 30 billion cubic meters of gas in 2016. Some 40.7 million tons of oil and 30.2 billion cubic meters of gas are expected to be produced in Azerbaijan in 2015.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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