BP States 50%-rise in its Share of Hydrocarbons
Azerbaijan, Baku, 15 April / Trend / In 2007, the net production of light oil production in Azerbaijan, which fell on ВР company's share, made up 200,000 barrels a day as compared to 145,000 barrels in 2006 and 75,000 barresl in 2005, accoridng to BP's 2007 annual report. BP is an operator of the Azeri-Chirag-Gunashli offshore field development, where Azeri Light is extracted.
In 2007, the net gas production from Shha Deniz field in Azerbaijan, which fell on BP's share, made up 73 mln cu feet a day (some 760mln cu m of gas a year).
In Azerbaijan, BP net production in 2007 was 218mboe/d, an increase of 50% from 2006 due to the ramping up of three Azeri oil producing platforms and due to commencement of production by Shah Deniz condensate gas platform in 2007.
The PSA on ACG development was signed was signed in September 1994. The efficiency term of PSA is 30 years. Production from Chirag was set up in 1997, in Central Azeri - early 2005, Western Azeri - early 2006, Eastern Azeri - late 2006. The commencement of the production from the Deepwater Guneshli field is scheduled for mid 2008.
The sides to the production sharing agreement on Azeri-Chirag-Gunashli field are BP (operator- 34.1%), Chevron (10.2%), SOCAR (10%), INPEX (10%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), ITOCHU (3.9%) and Hess (2.7%). The lump capital investments amount to $20bln
At present, approximately 21.5-22mln cubic meters of gas and 5,500-5,600 tons of condensate per day are produced from the Shah Deniz field. There are four wells on the field and drilling of the fifth well, which is scheduled to end in mid-2008, is underway.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ВР (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
Gas production in this field began in December 2006. The gas is transported to Georgia and Turkey via the South-Caucasus gas pipeline. Azerbaijan also purchases this gas.
BP, as an operator of the Azerbaijan International Operating Company (AIOC), manages and has a 34.1% share in the Azeri-Chirag-Gunashli (ACG) oil fields in the Caspian Sea, offshore Azerbaijan. Phase 3 of the project, which will develop the deepwater Gunashli area of ACG, remains on schedule to begin production in 2008- with platform topsides having been completed in September 2007.
BP is the operator of Shah Deniz (BP25.5%), which is in the Azerbaijan sector of the Caspian Sea and will deliver gas to markets in Azerbaijan, Georgia and Turkey. First delivery of gas to Turkey was achieved in July 2007.