Baku, Azerbaijan, Feb. 12
By Emil Ismayilov - Trend:
In the coming months, British BP which is the operator of the Shah Deniz gas and condensate field in the Caspian Sea's Azerbaijani sector will complete drilling of another well within the second phase of the field's development, a source in the oil and gas market told Trend.
The interlocutor said that currently the well's depth stands at 6060 metres out of the designed 6500 metres.
"Drilling of another well will also begin at the field in the near future within the advance drilling programme," the source said.
He stressed that in total the drilling of two wells will be completed and drilling of a new one will start this year under the Shah Deniz-2 project.
Two offshore platforms will be installed and over 20 subsea wells drilled as part of the Shah Deniz-2 project in order to produce an additional 16 billion cubic meters of gas per year.
The forecasts show that the gas production will exceed 24 billion cubic meters per year within the second stage of the field's development.
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.
The agreement's participants include such companies as the State Oil Company of the Azerbaijan Republic (SOCAR) with a 16.7 percent share, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (nine percent).
The cost of the second phase of the Shah Deniz field's development is estimated at $25 billion.
Previously BP's Vice President for the Shah Deniz field's development, Al Cook said the annual volume of gas production within the first phase of the field's development is planned to be increased from nine to 10.4 billion cubic meters.
An additional 1.4 billion cubic meters will be sold to SOCAR within the new contract.
Translated by E.A.
Edited by S.M.