Construction of Facilities under Phase 2 of Shah Deniz Project to Begin in 2009
Azerbaijan, Baku, 20 May / corr Trend E.Ismayilov / In 2009 within the framework of Stage 2 of Shah Deniz field it is planned to set up the construction at the Sangachal terminal of BP company where the oil, gas and condensate produced from the Azeri-Chirag-Gunashli and Shah Deniz fields are delivered, a source near to the project said.
The construction is scheduled to complete by 2012. At present the designing of additional rigs for Stage 2 of Shah Deniz is underway, the source said.
The contract to develop off-shore Shah Deniz field was signed on 4 June 1996. The parties involved in the contract are ВР (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
Gas production in the field was launched in December 2006. At present gas is transported to Georgia and Turkey via the South Caucasus gas pipeline. Azerbaijan also acts as a gas purchaser.
Some 8.8bln cu m of gas is envisaged to be produced within Stage I per year. The gas will be supplied to Azerbaijan, Georgia and Turkey. Production will be increased up to 20bln cu m within Stage II which will be realized after 2012. At this Stage, the gas is expected to be exported to Europe.
At preset possible gas production from the field constitutes 21.5-22mln cu m and 5,500-5,600 tons of condensate. The highest production rate is expected in 2009 at the level of 8.6bln cu m of gas.
Four wells operate in the field and the drilling of the fifth one is expected to be completed by August 2008. Afterwards it is planned to set up the drilling of one more well, which is scheduled to end by the beginning of 2009.
Results achieved after the analysis of data taken from SDX-4, confirmed the existence of considerable gas volumes of gas at Shah Deniz for the second stage of development. Though additional exploration is required to clarify the volume of work in Stage 2, the production rate will be more likely the same as in Stage 1 - 8.6bln cu m a year, the company said.
In accordance with the contract under Stage 1 of Shah Deniz gas will be sold only to Azerbaijan, Georgia and Turkey. It will not be transited to other countries.
However, at present Azerbaijan and Turkey are discussing transit agreement on transportation of the Azerbaijani gas via Turkey.
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