...

BP increases condensate production in Azerbaijan

Oil&Gas Materials 20 November 2014 20:20 (UTC +04:00)

Baku, Azerbaijan, Nov. 20

By Emil Ismayilov - Trend:

In three quarters of 2014, the Azerbaijani gas and condensate field Shah Deniz produced 7.25 billion cubic meters of gas and 1.72 million metric tons (13.8 million barrels) of condensate versus 7.3 billion cubic meters of gas and 1.4 million metric tons (10.9 million barrels) of condensate in Jan.-Sept. 2013, BP said in a report on its work in Azerbaijan in nine months of 2014.

The report said that during this period, the field produced 26.6 million cubic metres of gas per day and 50,450 barrels per day of condensate.

In 2013, Shah Deniz produced 9.8 billion cubic meters of gas and 2.48 million metric tons of condensate (19.6 million barrels) against 7.73 billion cubic meters of gas and two million metric tons of condensate in 2012.

During the first nine months of 2014, Shah Deniz spent approximately $371 million in operating expenditure and over $2,797 million in capital expenditure.

"For the full year, it is planned to spend around $435 million in operating expenditure and $3,885 million in capital expenditure," the BP report said. "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 third quarter of 2014, some 55.2 billion cubic meters of gas and 14.2 million metric tons of condensate have been produced, the report read.

The contract for development of the offshore field Shah Deniz, which has gas reserves of 1.2 trillion cubic meters, was signed June 4, 1996.

The share distribution among the agreement parties (after SOCAR's and BP's acquisition of Statoil's share in the project) is as follows: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 16.7 percent.

Earlier, Total sold its share in the project to the Turkish TPAO, and after completion of the deal the latter's share in the project will be 19 percent.

In December 2013, a final investment decision was made in Baku on the Shah Deniz-2, which includes the production of an additional 16 billion cubic meters of gas per year.

Initially, the peak production volume as part of the first stage of the field's development was projected at the level of nine billion cubic meters, but currently works are underway to increase this figure to 10.4 billion cubic meters.

The cost of the second stage of the Shah Deniz field's development is estimated at $28 billion.

Tags:
Latest

Latest