BP Spent $30mln on Construction of a New Underwater Water Injection System

Oil&Gas Materials 16 March 2007 16:18 (UTC +04:00)

Azerbaijan, Baku/ Trend , corr. S. Aliyev/ Thirty million USD have been spent on the underwater water junction to the oil reservoir on the deep-water section of the Gunashli Deposit up to date within the project on construction of the third section with necessary equipment. It will be for the first time, when underwater injection will be applied in the Caspian Sea. Bruce Lubersky, the Vice-President of BP Azerbaijan for the Azeri Project, has said that in general, in the fisrt quarter of 2007, some $10 mln. will be spent for these aims.

The total value of the construction, assembling, and mounting of this equipment within the project implemented within the project on the full-scale development of bloc of fields "Azeri-Gunashli-Chiragh" (ACG) is estimated at $180 mln. At the same time, this amount does not include expenditures to be spent on drilling wells.

The aggregate value of all the three underwater sections is estimated at $400 mln. The construction of the only third section of the underwater injection will allow producing some 50 mln. barrels of oil from this section of the field. The project of the development of the deep-water section of the Gunashli Deposit was sanctioned and authorized as far back as in September, 2004.

The underwater water junction system is considered for the maintenance of the production at a volume of about 200 mln. standard barrels, that makes up 20 percent out of the total reserves of the deep-water section of the Azerbaijani field.