BP increases gas production in Azerbaijan

Oil&Gas Materials 13 May 2015 21:00 (UTC +04:00)

Baku, Azerbaijan, May 13
By Maksim Tsurkov - Trend:

Azerbaijan's Shah Deniz gas and condensate field produced 2.6 billion cubic metres of gas and 0.6 million metric tons (about 5 million barrels) of condensate in Q1 of 2015, BP company said in its report on the results of its activities in Azerbaijan in Q1 of 2015.

This is while 2.32 billion cubic meters of gas and 0.6 million metric tons of condensate was produced at the field in the same period of 2014.

The existing Shah Deniz facilities' production capacity is currently 29.5 million cubic metres of gas per day, according to the report.

The volume of gas produced at Shah Deniz field stood at 9.9 billion cubic meters in 2014, while the volume of condensate production at this field totaled 2.3 million metric tons (18.7 million barrels), compared to 9.8 billion cubic meters of gas and 2.48 million metric tons of condensate (19.6 million barrels) in 2013.

In the first quarter of 2015, Shah Deniz spent approximately $0.1 billion in operating expenditure and $1.1 billion in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project, said the report.

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.

The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).

The final investment decision was made on Dec.17, 2013 on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will first go to the European market (10 billion cubic meters), while six billion cubic meters of gas will be annually delivered to Turkey.

If initially the volume of peak production within the first phase of the field's development was planned to reach 9 billion cubic meters, currently work is underway to increase this figure to 10.4 billion cubic meters.

The cost of the second stage of Shah Deniz field's development is estimated at $28 billion.

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