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Capital expenditure at Shah Deniz field exceeds $220 million in first quarter

Oil&Gas Materials 21 May 2012 14:07 (UTC +04:00)

Azerbaijan, Baku, May 21 / Trend E.Ismayilov /

In the first quarter of this year, the Azerbaijani Shah Deniz gas condensate field produced two billion cubic meters of gas and 0.5 million tons of condensate (4.1 million barrels), a report of BP in the first quarter of 2012 said on Monday.

According to the report, the average daily gas production from the field in the first quarter amounted to 22 million cubic meters, while the average daily condensate production stood at 45,400 barrels.

In 2011, the field produced about 6.67 billion cubic meters of gas and 1.8 million tons (14 million barrels) of condensate, or about 18.3 million cubic meters of gas per day and about 38,300 barrels of condensate per day.

According to the report, in the first quarter, operating expenditure under the project amounted to $81.5 million, and capital $220.6 million. In 2012, the operating expenditure under the project is projected at $211.5 million and capital at $1.34 billion.

Operating expenditure amounted to $190.7 million and capital expenditure to $674.9 million in 2011.

Since the start of Shah Deniz production in late 2006 till the end of 2011, about 32.4 billion cubic meters of Shah Deniz gas and 8.6 million tons (67.9 million barrels) of condensate were exported to the markets, the report says.

Peak production from the field in the first stage of development is projected at nine billion cubic meters of gas and 50,000 barrels of condensate. Gas reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters.

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, LukAgip - 10 per cent, TPAO - nine per cent and SOCAR-10 per cent.

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