SOCAR Assesses Project on Production Increase on BP-operated Fields

Oil&Gas Materials 9 September 2008 15:12 (UTC +04:00)

Azerbaijan, Baku, 9 September /corr. Trend E.Ismaylov / "The initial cost of the project on production increase within development project of Azeri-Chirag-Guneshli fields is estimated at $10bln," high-ranking representative of the State Oil Company of Azerbaijan (SOCAR) said on 9 September.

BP Company - operator of development project of Azeri-Chirag-Guneshli fields - commenced full-scale development of project on production increase on these fields due to construction of new platforms, pipelines and other infrastructures, a source at SOCAR said. 

"At present the volumes of work, planned oil and gas production have already been determined. There is no need to conclude a new agreement for the realization of this project. It will be realized within the contract PSA, signed in 1994," said the representative of SOCAR.

The approval of the project is envisaged in 2009. Other works will depend on the preparation of full-scale project, the source at SOCAR stated.

According to him, the investment in this project will return within the periods of the action of the existing contract - until 2024.

Earlier the representatives of BP  - operator of development project of Azeri-Chirag-Guneshli fields - stated that the period of stable production of more than 1mln barrels of oil per day (more than 50mln tons per year) on the fields can be prolonged not as it was planned formerly - from 2009 to 2013, but from 2009 to 2019.

Thus, the gross recoverable oil reserves on the fields may increase up to 9bln barrels. 

The prolongation of the period of stable production of more than 1mln barrels of oil per day can become possible due to construction of platform in 2013 on the field of Chirag for oil production from the formation of Balakhani. Annually 100,000 barrels of oil per day will be produced from this platform. In 2015 a new platform will be established on Azeri field for the production from Balakhni formation, which will make it possible to increase production by 100,000 more barrels per day. Due to Balakhani formation, BP plans to produce additionally 320-350mln barrels of oil.

Generally it is possible to produce additionally 1bln barrels of oil due to the new technologies.

Exported via Baku-Tbilisi-Ceyhan pipeline, Azeri Light oil is produced from Azeri-Chirag-Guneshli fields.

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