State Oil Company of Azerbaijan Republic is talking to Р'Р , operator of Azeri-Chirag-Guneshli project, on terms and volumes of natural gas transfer from Azeri oilfield, Trend reports with reference to officials of Industry and Power Engineering Ministry.
At the moment the terms of additional gas transfer by BP is being spoken of. Under the ACG contract, Azerbaijan must receive 1.4bn cubic meters of gas for free. However, this year Azerbaijan intends to acquire 3bn cubic meters of gas.
BP officials say in short the company is going to perform a gas injection in formation to maintain the formation pressure. In case some part of this gas is transferred to Azerbaijan, the injection volume falls resulting in decrease of oil production at the oilfield. AIOC wants to get compensated for this additional gas. Ministry officials, in turn, suggest compensation of non-extracted oil for Azerbaijans share in project oil. Earlier, BPs CEO David Woodwarth said that compensation payments may be effected using various methods.
Besides, volume of current years petroleum gas transfer is also spoken of. BP suggests counting volume from the moment of transfer, i.e. winter 2005/2006. Azeri officials, in turn, say such calculation shall start upon the gas injection to commence in May as the gas, if not being transferred to Azerbaijan prior to injection, would have been disposed of by BP.
At the moment the company transfers some 6 to 7 mln cubic meters of petroleum gas a day. This gas is pumped to gas distribution system of JSC Azerigaz.