Over half of profitable oil produced at ACG accounts for Azerbaijan (UPDATE)

Economy Materials 14 October 2015 17:06 (UTC +04:00)

Details added (first version posted on 15:57)

Baku, Azerbaijan, Oct. 14

By Maksim Tsurkov - Trend:

As much as 381 million tons of oil have been produced to date starting from November 1997 at the Azeri-Chirag-Guneshli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, 208 million tons of which accounted for Azerbaijani profitable oil, vice president of the State Oil Company of Azerbaijan (SOCAR) Khoshbakht Yusifzade said.

He made the remarks Oct.14 at a meeting with members of the Caspian European Club, the largest and dynamically developing regional organization.

He said that 23.5 million tons of oil were produced at the ACG in January-September 2015.

"Some 15.5 million tons of this amount account for profitable oil," Yusifzade said. "This represents approximately 66 percent of total production, which is a good indicator. We will increase this figure to 75-80 percent in the future."

He said that currently 86 wells operate at the ACG.

"Daily production at the ACG block of fields accounts for more than 86,000 tons of oil, and we plan to keep this level of production," Yusifzade said. "Until 2024, it is planned to produce 623 million tons of oil at the Azeri-Chirag-Guneshli field, which accounts for about 28 percent of total reserves on the block, until the end of the validity term of the current contract."

The contract for development of ACG field was signed in 1994. The proved oil reserves at these fields are estimated at approximately 1 billion metric tons. The shareholders of the project are: BP (operator in the Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.


Follow the author on Twitter: @MaksimTsurkov