SOCAR re­veals vol­ume of oil out­put from ACG block

Azer News - - Business - By Sara Is­rafil­bay­ova

Azer­bai­jan has pro­duced 438 mil­lion tons of oil and 138 bil­lion cu­bic me­ters of as­so­ci­ated gas from the Az­eri-Chirag-Gu­nashli (ACG) block of oil and gas fields in the Caspian Sea since Novem­ber 1997.

Alak­bar Ab­basov, ad­viser to first vice pres­i­dent of Azer­bai­jan’s state oil com­pany SOCAR, made the re­marks at the SPE’s 4th an­nual Caspian Tech­ni­cal Con­fer­ence and Ex­hi­bi­tion on Novem­ber 1.

He went on to say that 246 mil­lion tons of the pro­duced oil ac­counted for prof­itable oil.

“Of 459 mil­lion tons of oil ex­ported by Azer­bai­jan, 342 mil­lion tons ac­counted for the ex­port via the Baku-Tbil­isi-Cey­han pipeline,” Ab­basov added.

Fur­ther, touch­ing upon Azer­bai­jan’s oil out­put he men­tioned that the coun­try will reach 2 bil­lion tons of oil out­put vol­ume within the next few days.

"Since 1871, when the record of oil pro­duc­tion was started, al­most two bil­lion tons of oil has been pro­duced in Azer­bai­jan, while in the pe­riod of Azer­bai­jan's in­de­pen­dence the coun­try pro­duced 700 mil­lion tons of oil," he said.

"Of this vol­ume, 460 mil­lion tons of oil was pro­duced from Az­eri-Chirag-Guneshli oil and gas fields and con­den­sate from Shah Deniz field, and the rest 240 mil­lion tons of oil ex­tracted by SOCAR in­de­pen­dently," Ab­basov said.

A con­tract for de­vel­op­ment of ACG block of oil and gas fields was signed in 1994 for 30 years.

Thir­teen com­pa­nies from eight coun­tries (Azer­bai­jan, the U.S., Great Britain, Rus­sia, Turkey, Nor­way, Ja­pan, and Saudi Ara­bia) have par­tic­i­pated in sign­ing of the "Con­tract of the Cen­tury".

Azer­bai­jan’s state oil com­pany SOCAR and BP-op­er­ated Azer­bai­jan In­ter­na­tional Op­er­at­ing Com­pany (AIOC) signed an agree­ment on fu­ture de­vel­op­ment of the ACG field in De­cem­ber 2016.

The agree­ment will cover the de­vel­op­ment of the field un­til 2050 and will add sig­nif­i­cant re­source de­vel­op­ment po­ten­tial. The doc­u­ment spec­i­fies the key com­mer­cial terms for the fu­ture de­vel­op­ment of the ACG field and en­ables the par­ties to con­clude ne­go­ti­a­tions and fi­nal­ize fully-termed agree­ments in the next few months.

The ACG field, which lies 120km off the coast of Azer­bai­jan, is con­sid­ered to be the largest oil­field in the Azer­bai­jan sec­tor of the Caspian Sea.

The proven oil re­serves of the block amounts to ap­prox­i­mately 1 bil­lion tons.

Share­hold­ers of the ACG de­vel­op­ment in­clude BP with 35.8 per­cent, Chevron - 11.3 per­cent, In­pex - 11 per­cent, AzACG - 11.6 per­cent, Sta­toil - 8.55 per­cent, Exxon - 8 per­cent, TRAO- 6.75 per­cent, Itochu - 4.3 per­cent and ONGC - 2.7 per­cent.

Ad­dress­ing the con­fer­ence, Ab­basov stressed that since the be­gin­ning of op­er­a­tion in 2006, 86 bil­lion cu­bic me­ters of gas and 21.5 mil­lion tons of con­den­sate has been ex­tracted from Azer­bai­jan’s big­gest Shah Deniz gas field.

He added that up till now Azer­bai­jan ex­ported 6.5 bil­lion cu­bic me­ters of gas to Ge­or­gia and 48.5 bil­lion cu­bic me­ters of gas to Turkey via the South Cau­ca­sus Pipeline.

"As part of the first stage of de­vel­op­ment of Shah Deniz field, around 2.2 mil­lion cu­bic me­ters of gas are sup­plied to Ge­or­gia and around 19 mil­lion cu­bic me­ters of gas are sup­plied to Turkey," Ab­basov said.

The Shah Deniz, dis­cov­ered in 1999, is one of the world’s largest gas-con­den­sate fields.The field is lo­cated on the deep wa­ter shelf of the Caspian Sea, 70 km south-east of Baku, in wa­ter depths rang­ing from 50 to 500 m.

Shah Deniz field's re­serves are es­ti­mated at 1.2 tril­lion cu­bic me­ters of gas.

The project share­hold­ers are BP (28.8 per­cent), AzSD (10 per­cent), SGC Up­stream (6.7 per­cent), Petronas (15.5 per­cent), Lukoil (10 per­cent), NICO (10 per­cent) and TPOC (19 per­cent).

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