Baku, Azerbaijan, Jan.28
By Leman Zeynalova – Trend:
Japan’s INPEX Corporation is focused on contributing to maintaining stable output at Azeri-Chirag-Guneshli (ACG) block of oil and gas fields in Azerbaijan, the company told Trend.
“During the first three quarters of 2018, ACG continued to safely and reliably deliver stable production. Total ACG production for the nine months was on average 588,000 barrels per day (b/d) (about 161 million barrels or 22 million tonnes in total) from the Chirag (47,000 b/d), Central Azeri (156,000 b/d), West Azeri (126,000 b/d), East Azeri (97,000 b/d), Deepwater Gunashli (105,000 b/d) and West Chirag (57,000 b/d) platforms,” said the Japanese company.
INPEX recalled that it acquired an interest in the Azeri-Chirag-Gunashli (ACG) Oil Fields in a region of the south Caspian Sea in Azerbaijan in April 2003. “At the ACG Oil Fields, oil is being produced at the Chirag, the Central Azeri, the West Azeri, the East Azeri, the Deepwater Gunashli and the West Chirag. In September 2017, INPEX announced an agreement with the State Oil Company of the Azerbaijan Republic (SOCAR) extending the duration of the company’s rights by 25 years to December 31, 2049. Since then, INPEX has continued to work in partnership with the BP-operated AIOC members and SOCAR to enhance project value including maintaining and increasing the volume of production and reserves at the ACG oil fields.”
INPEX Corporation said that the Azeri Central East (ACE) project represents the next stage of development in the ACG contract area.
“More generally, INPEX is continuously on the lookout for new projects around the world including Azerbaijan with the potential to support and contribute to its business targets as laid out in VISION 2040. There are certain business risks such as the increase in expenditures due to the implementation of measures to meet environmental regulations, and the decrease of oil production due to the restriction of re-injection of associated gas during the winter season. However, INPEX considers Azerbaijan to be an important business area and is focused on contributing to maintaining stable production and supply volumes at the ACG Project over the long-term.”
INPEX currently has a 9.31 percent participating interest (through INPEX Southwest Caspian Sea, Ltd.) in the Azeri-Chirag-Gunashli Oil Fields in Azerbaijan. Moreover, the company has 2.5 percent share in Baku-Tbilisi-Ceyhan oil pipeline.
A contract for development of ACG block was signed in 1994. A ceremony to sign a new contract on development of the ACG block until 2050 was held in Baku Sept. 14, 2017.
ACG participating interests are: BP (30.37 percent), SOCAR (25.0 per cent), Chevron (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).
Total length of BТC is 1,768 kilometers, including a 443-kilometer section running through Azerbaijan, a 249-kilometer section in Georgia and a 1,076-kilometer section in Turkey. Construction of the pipeline started in April 2003. It was filled with oil May 18, 2005.
The BTC Co., which was established August 1, 2002 for implementation of the BTC pipeline project, has the following shareholders: BP (30.1 percent); AzBTC (25 percent); Chevron (8.9 percent); Statoil (8.71 percent); TPAO (6.53 percent); Eni (5 percent); Total (5 percent), ITOCHU (3.4 percent); INPEX (2.5 percent), ExxonMobil (2.5 percent) and ONGC (BTC) Limited (2.36 percent).
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