Average daily volume of gas production at Shah Deniz field revealed
Baku, Azerbaijan, Oct.23
By Emil Ismayilov - Trend:
The average daily volume of gas production at Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea is equal to 27 million cubic meters, a source at the State Oil Company of Azerbaijan (SOCAR) told Trend on Oct.22.
The reserve of the Shah Deniz field is estimated at 1.2 trillion cubic meters of gas. The contract for the development of the Shah Deniz field was signed on June 4, 1996.
Currently, gas is produced from five wells at the field.
The average daily volume of gas production at the field totaled 26.2 million cubic meters, while the average daily volume of condensate production stood at 49,760 barrels.
Some 4.75 billion cubic meters of gas and 1.12 million metric tons of condensate (around 9 million barrels) was produced at the Shah Deniz filed in H1 of 2014, compared to 4.8 billion cubic meters of gas and 1.26 million metric tons of condensate (about 10 million barrels) in Jan.-June 2013.
About 9.8 billion cubic meters of gas and 2.48 million metric tons of condensate (19.6 million barrels) was produced at the Shah Deniz field in 2013, compared to 7.73 billion cubic meters of gas and 2 million metric tons of condensate in 2012.
The shareholders are: BP, operator (28.8 percent), Statoil (15.5 percent), NICO (10 percent), Total (10 percent), Lukoil (10 percent), TPAO (9 percent) and SOCAR (16.7 percent). These percentages include the recent purchases of equity from Statoil by BP and SOCAR.
Earlier, Total has entered into an agreement to sell its interest in Shah Deniz to TPAO. After the transaction is over, the share of the latter in the project will be 19 percent.
Moreover, Norway's Statoil company has sold its 15.5-percent share in the Shah Deniz project, to the Malaysian oil and gas company Petronas. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.
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.
On December 17, 2013, a final investment decision was made on the Stage 2 of the 'Shah Deniz' offshore gas and condensate field's development. It is planned to produce additional 16 billion cubic meters of gas per year under the Shah Deniz-2 project.
The cost of the second stage of the Shah Deniz development is estimated at $28 billion.
Edited by CN