Operating results on "Shah Deniz" gas condensate field announced
Baku, Azerbaijan, May 15
By Emil Ismayilov - Trend:
Some 2.32 billion cubic meters of gas and 0.6 million tonnes of gas condensate (4.44 million barrels) has been produced at the Azerbaijani "Shah Deniz" gas condensate field in the first quarter of 2014, compared to some 2.42 billion cubic meters of gas and 0.63 million tonnes of condensate in Q1, 2013, according to the BP company's activity report in Q1, 2014.
The average daily volume of gas production at the field amounted to 26 million cubic meters in January-March, and the average daily production of condensate - 49,330 barrels, the report said.
In 2013, some 9.8 billion cubic meters of gas and 2.48 million tonnes of condensate (19.6 million barrels) were produced at the "Shah Deniz" field compared to some 7.73 billion cubic meters of gas and two million tonnes of condensate in 2012.
In January-March, the operating costs of the project amounted to $120 million, and capital - $785 million. In 2014, the operating costs of the project are projected in the amount of the $480 million, and capital - 3.65 billion.
As noted in the report, the capital expenditures associated with work in the second stage of field development and expansion of the Sangachal terminal.
Some 50.3 billion cubic meters of gas and 13 million tonnes (194.5 million barrels) of condensate have been sent to the world markets from the end of 2006 (the start of production on "Shah Deniz") to the end of Q1, 2014.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The agreement's participants include such companies as the State Oil Company of Azerbaijan Republic (SOCAR) with a 16.7 percent share, BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), the French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (9 percent).
The contract was signed following the adoption on the final investment decision on Shah Deniz -2 on December 17, 2013, in Baku. The final investment decision envisages ensuring production of an additional 16 billion cubic meters of gas per year.
Initially, peak production volume under the first phase of development of the field was planned at the level of nine billion cubic meters, currently work is underway to increase this figure to 10.4 billion cubic meters.
The cost of the second phase of the Shah Deniz development is estimated at $28 billion
Edited by C.N.