AIOC Launches Gas Production from a New Gas-Reservoir on Azerbaijani Offshore Bloc

Oil&Gas Materials 12 April 2007 20:49 (UTC +04:00)

Azerbaijan, Baku/ Trend , corr. S. Aliyev/ AIOC (Azerbaijan International Operating Company) with the operator, BP, has launched gas production from the eighth gas-reservoir horizon ("Balakhani Suite"), which is located in the upper "Pereryv Suite", from where oil was produced on the Azerbaijani offshore block of Azeri-Chiragh-Gunashli (ACG), a source in the State Oil Company of Azerbaijan (SOCAR) said today.

The production of this gas will allow injecting it back to the reservoir increasing and stabilizing oil production on ACG. Works being carried at the horizons upper "Pereryv Suite" do not require the conclusion of any new contract.

According to some experts, SOCAR is currently developing "Balakhani Suite", particularly on the shallow-water section of the Gunashli Deposit, where it is producing gas at its own. Only in this year, SOCAR has intensions to drill thirteen to twenty wells in order to increase its gas production.

The PSA (Product Sharing Agreement) on ACG Project was signed in September, 1994, and considers the development of the contract area of Azeri-Chiragh-Gunashli over the next 30 years. According to the estimation, some 5.4bln barrels of oil are expected to be produced within the validity of the mentioned contract.

The parties to ACG Project are BP (the operator - 34.1%), Chevron (10.2 %), SOCAR (10 %), INPEX (10 %), Statoil (8.6 %), ExxonMobil (8 %), TPAO (6.8 %), Devon (5.6 %), ITOCHU (3.9 %), and Hess (2.7 %).