BAKU, Azerbaijan, Nov.1
By Leman Zeynalova – Trend:
This year Azerbaijan will produce almost 7 billion cubic meters (bcm) of gas more than last year, said Yashar Latifov, vice president for field development at Azerbaijan’s state oil company SOCAR, Trend reports.
“This year will essentially be about producing almost 7 billion cubic meters of gas more than last year. We are expecting about 19 billion cubic meters this year from Shah Deniz and then we will go up to 22 billion cubic meters next year, and to 24 billion cubic meters by 2022. The overall trend is towards a material increase in gas production levels,” he told Petroleum Economist.
Taking specifically about the Azeri-Chirag-Gunashli block of oil and gas fields (ACG) in the Azerbaijani sector of the Caspian Sea, he said that the production level has now slipped off its plateau. The aim is to ensure the decline plays out in a manageable manner, added SOCAR’s vice-president.
“Despite the advanced age of the fields, we keep them running at a high level of intensity,” he said. “Look at the recovery efficiency ratio: we are developing remaining reserves at an average rate of 5pc. That is a very good number, given that the fields are very old.”
On September 20, 1994, the Government of Azerbaijan and a group of international oil companies representing eight countries signed the Azeri-Chirag-Gunashli Production Sharing Agreement, which later became known as the “Contract of the Century”. The Contract was extended in September 2017 until mid-century.
From the start of production in November 1997 till the end of 2Q 2019, ACG produced about 488 million tonnes (more than 3.6 billion barrels) of oil.
ACG participating interests are: BP (30.37 percent), SOCAR (25 percent), 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).
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