Up of Azeri-Chirag-Guneshli production not to affect Azerbaijan’s Share in profitable oil: SOFAZ

Oil&Gas Materials 14 February 2009 14:46 (UTC +04:00)

Azerbaijan, Baku, Feb. 14 / Trend , E.Ismayilov/

Increasing oil production in Azeri-Chirag-Gineshli (ACG) field will not affect Azerbaijan's share in the project's profitable oil, the State Oil Fund of Azerbaijan (SOFAZ) Executive Director Shahmar Movsumov said.

At present 80 percent of profitable oil falls on Azerbaijan and 20 percent - on the Azerbaijan International Operation Company (AIOC).

"The AIOC fully renewed all investments in Azerbaijan. Therefore, Azerbaijan's share in the project increased to 80 percent. The share will not undergo changes soon," Movsumov said.

It is planned to increase ACG production by constructing platforms on Chirag field to produce oil from Balakhani svita.

Preliminary cost of increasing ACG production is $16 billion, senior officials of the State Oil Company of Azerbaijan Republic (Socar) said earlier.

It is not necessary to sign a new agreement to realize the project. It will be implemented as part of the existing PSA contract signed in 1994.

Participants of the project on development of huge Azeri-Chirag-Guneshli offshore field include BP - operator with 34.1367% of stakes, ChevronTexaco - 10.2814%, SOCAR - 10%, INPEX - 10%, Statoil - 8.5633%, ExxonMobil - 8.006%, TPAO - 6.75%, Devon Energy - 5.6262%, Itochu - 3.9205% and Delta Hess - 2.7213%.

The project will be launched in 2010, the Socar official said earlier. The remained will depend on development of a full-scale project. Investments in the project will be returned as part of action term of the current contract - by 2024.

Earlier BP official said that term of stable production of over 1 million barrels of oil per day (over 50 million tons each year) can be prolonged not from 2009 to 2013 as earlier planned, but from 2009 to 2019.

Extension of stabile production period to 1mln barrels of oil a day may become possible due to the construction of a platform for oil production from Balakhani layer in Chirag field in 2013. A total of 100,000 barrels of oil will be produced from this platform annually. In 2015, a new platform will be installed in Azeri field for production from Balakhani layer which will enable to increase output by 100,000 barrels a day. BP plans to produce additional 320mln to 350mln barrels of oil with the help of Balakhani layer.

It is possible to produce 1 billion barrels of oil by using new technologies.

Azeri Light oil is produced from ACG and transported via BTC.

BTC company shareholders include: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); Statoil Hydro (8.71 percent); ТРАО (6.53 percent); Eni (5 percent); Total (5 percent); Itochu (3.40 percent); Inpex (2.50 percent); ConocoPhillips (2.50 percent) and Hess (2.36 percent).

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