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Azerbaijan Gets More Gas from Shakhdaniz Than Expected

Oil&Gas Materials 7 August 2006 17:35 (UTC +04:00)

This year with taking into account that the predicted oil production from the gas condensate field of Shakhdaniz has been raised, Azerbaijan can get about 670 m cubic meters of gas, the Ministry of Industry and Energy told Trend.

According to the plans the oil and gas production in this field to be started at the end of September 2006. At present all works are carried out according to the schedule, it was pointed out at the Ministry.

However, if Turkey cannot receive the gas on the border with Georgia, this volume can be extended, the Ministry told. That can be happen if the construction of the Turkish section of the South Caucasian pipe line is not completed in time. Since the part of this gas is consumed by Azerbaijan, the other one can be supplied to Georgia. If that happens, then it will be necessary to hold negotiations on the gas volume and its price.

In this year in the gas condensate field of Shakhdaniz of the Azerbaijan internationally recognized sector of the Caspian Sea to be produced about 1, 200 m cubic meters of gas.

During the negotiations with the partners on the project of Shakhdaniz the volume of gas production was also discussed. Earlier it was expected that in this year (the beginning of gas production in the field to be planned to the end of September 2006) 850 m cubic meters of gas to be produced in the gas condensate field of Shakhdaniz. But this indicator has even been extended.

In Shakhdaniz the fourth hole was bored, and according to its results it was evident that 1, 140 m 1, 200 m cubic meters of gas to be produced in the field till the end of the year.

The price of gas produced in the field of Shakhdaniz for Azerbaijan will be $58 per 1, 000 cubic meters (taking into account the heat conductivity). For Georgia this price will be $63 per 1,000 cubic meters of gas, and $120 per 1, 000 cubic meters for Turkey.

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