Major events in Caspian countries' oil and gas industry for week (Jan. 21 – 25 )
Azerbaijan extends Shah Deniz gas deal to 2036
Azerbaijan has extended the production sharing agreement (PSA) behind the Shah Deniz gas project for an extra five years, a top official said on Friday, in a signal of improving relations with the operator, Britain's BP, Reuters reported. Azerbaijan's biggest gas field and one of the largest in the world began producing gas in 2006 and has a production capacity of 8 billion cubic metres a year from its first phase. Its second phase is expected to start production in 2018 and reach another 16 bcm in annual output. "We have agreed to extend the Shah Deniz PSA from 2031 to 2036, and the Shah Deniz partners will now proceed with phase 2", Elshad Nassirov, vice president of the Azeri state oil company SOCAR, told Reuters in Davos.
TAP concludes Shareholder Agreement with SOCAR, BP and Total
TAP and its shareholders - Axpo, Statoil and E.ON have concluded a Shareholder Agreement with three members of the Shah Deniz Consortium: SOCAR, BP and Total, TAP reported. The Shareholder Agreement, finalised and initialled by all parties, stipulates how the TAP Joint Venture will be governed by an enlarged shareholder group comprising of Statoil, E.ON, Axpo, SOCAR, BP and Total as shareholders, TAP reported. The Shareholder Agreement will take effect once SOCAR, BP and TOTAL decide to exercise their options to join the TAP Joint Venture, taking a combined stake of up to 50% in TAP AG.
BP announces plans on Shah Deniz Stage 2 project
"The first gas will be extracted and exported within the second stage of developing Azerbaijani gas condensate field Shah Deniz in 2018. Over the next 18 months, so in 2013-2014 we will make commitments to spend 10 bln dollars on this project," BP's Vice President for Shah Deniz Development, Al Cook said. Testing conducted on major offshore operation in Azerbaijan. Works on steel structures for the construction of topsides and drilling equipment on the platform of the Chirag Oil Project (which increases in oil production on the block of Azeri-Chirag-Gunashli fields) are 99% complete, a source in the oil and gas market said. According to the source, testing works and the preparation of structures necessary for the descent of the topsides into the sea are currently underway. "Work is expected to be completed in May. The topsides will enter the sea in May or June," the source said. Dragon Oil, SOCAR extend agreement on oil transportation Dragon Oil PLC (Ticker: DGO), an international oil and gas exploration, development and production company, announces that the Group has reached a two-year agreement with Socar Trading for the sale of the full volume of our export entitlement production via Baku, Azerbaijan, the company said. The Group has reached an agreement to secure a reliable export route for all its anticipated export production until 31 December 2014, FOB (free-on-board) the Aladja Jetty.
SOCAR projects new platform in Caspian Sea field
SOCAR is projecting the second platform in the Umid field in the Azerbaijani sector of the Caspian Sea, a source said. A source said that this process can take 5-6 months. Issues around the installation of this new platform are being considered, as it is needed for full field development. The source stated that at present, work is underway to drill the third well in the field. Previously, two exploration wells were drilled there, one of which is currently in operation; the extracted gas and condensate are delivered onshore via underwater infrastructure. According to the source, drilling will be completed in the first half of 2013. The source also stressed that the work is being carried out to amend the contract with Nobel Oil Exploration and Production within the joint venture with SOCAR-Umid JSC. The contract currently covers the exploration period in the field. After making the additions, it will also cover development period.
Schlumberger to conduct drilling operations at Turkmenistan's largest gas field
Turkmengeology State Corporation and Schlumberger Logelco Inc (Panama) will sign a contract for drilling services, the preparation of drilling fluids and the strengthening of well casing at three development wells on Turkmenistan's largest gas field, Galkynysh, an official Turkmen source reported. The contract is the outcome of an international tender that was followed by an executive order signed by President Gurbanguly Berdimuhamedov.
Turkmen State Concern to sign contracts on major gas field
The Turkmengaz State Concern will sign new contracts to conduct drilling work and development of wells in Galkynysh, the country's major gas field in Mary Province, an official Turkmen source said. The country's president signed the corresponding decree. The question is about the deal with the following companies: Halliburton Eurasia Ltd. (Cyprus) for preparation of drilling solutions in the construction of the seven operation wells; Western Atlas International Inc. (USA) to fasten casing and production pipes with cement and drilling of seven development wells; Weatherford Oil Tool M.E Ltd. (British Virgin Islands) for the development of 14 production wells, delivery and installation of underground equipment in wells.