Azerbaijani Shah Deniz produces nearly 4 billion cubic meters of gas during I half of year

Oil&Gas Materials 15 August 2012 17:21 (UTC +04:00)

Azerbaijan, Baku, Aug.15 /Trend/

During the first half of 2012, the field produced 3.36 billion cubic metres (about 119 billion cubic feet) of gas and 0.9 million tones (7.1 million barrels) of condensate according to the report of BP on the basis of the first half of 2012, published on Wednesday. First production at the field was carried out from five wells.

It is noted in the report that average daily production of gas amounted to 18.5 million cubic metres and condensate - 39,100 barrels during the first half of the year.

Some 6.67 billion cubic meters of gas and 1.8 million tons (14 million barrels) of condensate were produced at Shah Deniz in 2011. Last year, the average daily production from the field was 18.3 million cubic meters of gas and 38.3 thousand barrels of condensate.

In the first half of 2012, Shah Deniz spent $154.6 million in operating expenditure and $471.7 million in capital expenditure. It is forecasted to spend $211.5 million in operating expenditure and $1.34 billion in capital expenditure on Shah Deniz activities in 2012.

Operating costs of the project in 2011 totaled $190.7 million, and capital - $674.9 million.

Since the start of Shah Deniz production in late 2006 till the end of the first half of 2012, about 34 billion standard cubic metres of Shah Deniz gas, and over 71 million barrels (9 million tones) of Shah Deniz condensate was exported to the markets, the report said.

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