Baku, Azerbaijan, Aug. 10
By Azad Hasanli - Trend:
During the first half of 2015, Shah Deniz produced 5.2 billion standard cubic metres (bcm) of gas and 1.2 million tons (about 9.8 million barrels) of condensate compared to 4.75 billion cubic meters of gas and 1.12 million tons of condensate extracted in the same period of 2014, BP company said in a report on its activity in Azerbaijan in January-June 2015.
The existing Shah Deniz facilities' production capacity is currently 29.5 million standard cubic metres of gas per day or around 10bcma.
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.
During the first half of 2015, Shah Deniz spent approximately $0.25 billion in operating expenditure and $2.26 billion in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project.
Most of the capital expenditure is connected with the work as part of the second stage of the field development, the report said.
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.
Shah Deniz participating interests are: BP (operator - 28.8 per cent), AzSD (10.0 per cent), SGC Upstream (6.7 per cent), Petronas (15.5 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (19 per cent).
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.