SOCAR: Contract on deep-bed gas development at Azerbaijan's ACG fields close completion

Oil&Gas Materials 18 April 2011 19:31 (UTC +04:00)

Azerbaijan, Baku, April 18 / Trend E.Ismayilov /

BP Company may be the operator of the project to develop deep-bed gas on the Azeri-Chirag-Guneshli (ACG) fields in the Azerbaiani sector of the Caspian Sea, Vice President of the State Oil Company of the Azerbaijan Republic (SOCAR) Khoshbakht Yusifzade said on Monday.

He said the development of deep-bed gas is not reflected in the PSA existing contract for oil production from these fields. Therefore, SOCAR is currently negotiating on this issue.

The negotiations on this project are nearing completion, and production could begin in 2017 or even earlier, Yusifzade said.

Based on the project, a relevant work will be initially carried out on the Chirag and Guneshli fields, and then on the Azeri field.

Projected volumes of deep-bed gas are around 200-250 billion cubic meters, Yusifzade said.

The ACG field's reserves are estimated at 925 million tons of oil and 280 billion cubic meters of gas.

ACG participating interests are: BP (operator - 37. 4%), Chevron (11.3%), SOCAR (10%), INPEX (11%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.7%), ITOCHU (4.3%), Hess (2.7%).