Baku, Azerbaijan, Aug.15
By Emil Ismayilov - Trend:
During the first six months of 2014, the field produced 4.75 billion standard cubic metres (about 168 billion cubic feet) of gas and about 1.12 million tonnes (9 million barrels) of condensate compared to 4.8 billion cubic meters of gas, according to BP report as of Jan.-June 2014.
About 26.2 million cubic metres of gas per day (over 926.4 million standard cubic feet per day) and 49,757 barrels per day of condensate were produced.
In 2013, some 9.8 billion cubic meters of gas and 2.48 million tonnes of condensate (19.6 million barrels) were produced at the Shah Deniz field compared to 7.73 billion cubic meters of gas and 2 million tonnes of gas condensate in 2012.
During the first half of 2014, Shah Deniz spent approximately $243 million in operating expenditure and over $1,766 million in capital expenditure. For the full year, it is planned to spend around $483 million in operating expenditure and $3,781 million in capital expenditure.
The great majority of this capital expenditure is on the Shah Deniz Stage 2 project, which includes both offshore developments and expansion of the Sangachal terminal.
Since the start of Shah Deniz production in late 2006 until the end of the second quarter 2014, about 52.7bcm (1,861 billion standard cubic feet) of Shah Deniz gas, and about 108.5 million barrels (over 13.6 million tonnes) of Shah Deniz condensate has been produced.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.
The shareholders are: BP, operator (28.8 per cent), SOCAR (16.7 per cent), Statoil (15.5 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent). These percentages include the recent purchases of equity from Statoil by BP and SOCAR. Total has entered into an agreement to sell its 10% interest in Shah Deniz to TPAO.
After the transaction is over, the share of the latter in the project will be 19 percent.
The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013, which envisages additional 16 billion cubic meters of gas per year.
Initially, the volume of peak production as part of the first phase of the field development was envisaged at the level of nine billion cubic meters. At present, the work is underway to increase this figure to 10.4 billion cubic meters.
The cost of the second stage of Shah Deniz development is estimated at $ 28 billion.