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Azerbaijan’s oil and gas production forecast for 2009 dramatically exceeds forecast for 2008

Oil&Gas Materials 22 December 2008 20:29 (UTC +04:00)

Azerbaijan, Baku, Dec. 22 / Trend , S.Aliyev/ During 2009, oil production in Azerbaijan is forecast to exceed 57mln tons, said a source in the oil industry.

Of the total oil production, 48.5mln tons will be extracted by the Azerbaijan International Operating Company (operator BP) in the Azeri-Chirag-Gunashli block of fields, said the source. The remaining amount of oil - about 8.6mln tons - will be produced by the State Oil Company of Azerbaijan (SOCAR) from its own oil fields.

Over the next year, gas production in Azerbaijan will total 30bln cu m. Of the total amount, 9bln cu m will be produced from the Shah-Deniz gas and condensate field, which is developed by a consortium of foreign companies, 8bln cu m will be produced by SOCAR from its own fields. The remaining volume of gas will be produced from the Azeri-Chirag-Gunashli (ACG) fields, which produce casing-head gas part of which is pumped into the formation to maintain the pressure and part is transferred free to SOCAR.

The Azeri-Chirag-Gunashli PSA was signed in September 1994. The agreement provides for the development of the contract area within 30 years. Production in the Chirag field commenced in 1997, on Central Azeri at the beginning of 2005, West Azeri at the beginning of 2006, East Azeri at the end of 2006, deepwater Gunashli in spring 2008.

Azeri-Chirag-Gunashli participating interests 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 contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: ВР (operator - 25.5%), StatoilHydro (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%). Gas production from the field began in December 2006. Gas is transported to Georgia and Turkey through the South Caucasus gas pipeline. Azerbaijan also purchases the fuel.

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