Baku, Azerbaijan, Aug.12
By Emil Ismayilov - Trend:
Average daily gas production at the "Shah Deniz" gas-condensate field in the Azerbaijani sector of the Caspian Sea is more than 27 million cubic meters, a source in the State Oil Company of Azerbaijan told Trend.
The contract for development of the Shah Deniz offshore field, which has proven reserves of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
Currently, gas production is carried out in five wells at the field, the source said.
"The volume of gas production in the field is high, and they are at the level of 27.3-27.4 million cubic meters per day," the source said.
The average daily volume of gas production at the field was 26 million cubic meters, and the average daily production of condensate - 49,330 barrels in the first quarter of this year.
In 2013, some 9.8 billion cubic meters of gas and 2.48 million tons of condensate (19.6 million barrels) was produced at the "Shah Deniz" field versus 7.73 billion cubic meters of gas and 2 million tons of gas condensate in 2012.
Participants in the Shah Deniz field development are the State Oil Company of Azerbaijan (SOCAR) with a share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent), Turkish TPAO (9 percent). Earlier, Total sold its share to Turkish TPAO and after completion of the transaction, the share of the latter will be 19 percent in the project.
The contract was signed following the adoption on the final investment decision on Shah Deniz -2 on Dec.17 2013 in Baku. The final investment decision envisages the ensuring of production of an additional 16 billion cubic meters of gas per year.
If initially the peak production volume under the first phase of development of the field was planned at the level of nine billion cubic meters, currently work is underway on increasing this figure to 10.4 billion cubic meters.
The cost of the second stage of Shah Deniz development is estimated at $28 billion.
Edited by CN