SOCAR reveals amounts of oil and gas production on ACG

Oil&Gas Materials 9 September 2014 17:00 (UTC +04:00)

Baku, Azerbaijan, Sept. 9

By Emil Ismayilov - Trend:

Maintaining of production volumes at a level above 30 million metric tons in the long run is the main goal within the framework of the development of the unit of Azeri-Chirag-Guneshli oil and gas fields in the Azerbaijani sector of the Caspian Sea, the head of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullayev said Sept.9, answering the question of the decrease of production volumes on the block.

Abdullayev explained a slight decrease in production volumes by saying that sometimes figures on irrigation and receipt of sand in the well exceed forecast data, which is an unpredictable process.

"However, the situation at the ACG is constantly monitored and all necessary works on maintaining of stable performance on the unit are regularly held," the head of the State Oil Company said.

He added that a private program of promising development of the block was prepared by the company as a mechanism of control over the work of ACG.

"This year, oil production volumes at ACG will exceed the projected levels, and in the next year oil production will remain at the level of this year," Abdullayev said.

Regarding the development of deep-lying gas on the ACG, the head of SOCAR said that signing of the contract for this project is not expected yet due to a conflict of interests that arises due to the presence of two different hydrocarbon objects in the same area.

"We are trying to resolve this conflict of interests," Abdullayev said.

The reserves of deep-lying gas on the block are estimated at 300 billion cubic meters.

The contract on a major Azeri-Chirag-Guneshli offshore field development was signed in 1994. Term of the agreement is 30 years. Proved oil reserves in these fields are estimated at about 1 billion metric tons.

Participation in the contract is distributed as follows: BP (operator in the Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.