Baku, Azerbaijan, Nov. 4
By Maksim Tsurkov - Trend:
Over the past seven years the cost of extracting one barrel of oil grew globally by an average of five times, said Denis Lemarchal, executive director of Total E&P Azerbaijan.
He made the remarks addressing the SPE Annual Caspian Technical Conference and Exhibition in Baku, Nov. 4.
Lemarchal further said there are several factors causing an increase in expenditures of oil companies.
"The increase in costs is influenced by factors such as the economic crisis and inflation, the need for improvements in the area of ecology, and industrial safety," he explained.
"In this respect, Total has been since last year implementing a policy of costs regulation and reduction," said Lemarchal.
Total E&P Azerbaijan is taking part in the development of the offshore gas condensate field 'Absheron', where it owns a 40-percent share.
The company is also participating in the development of the offshore field 'Shah Deniz' (10 percent), and in the project for the Baku-Tbilisi-Ceyhan oil pipeline (five percent).
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