Expenses on country’s significant energy projects revealed
BThe Shah Deniz consortium spent $1.048 billion on the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea during the reporting period.
BP-Azerbaijan reported that more than $250 million of this amount fell on the operating expenses, approximately $798 million – on capital expenditures.
The total expenses for Shah Deniz in the annual comparison decreased by 44 percent, operating expenses increased by 0.40 percent, while capital expenditures decreased by 51 percent.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996.
Shah Deniz field’s reserves are estimated at 1.2 trillion cubic meters of gas.
The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).
BTC Co. spent $74 million on activities on the main export pipeline Baku-Tbilisi-Ceyhan (BTC). Operating expenses for the first half of the year amounted to about $61 million, capital expenditures - about $13 million.
Operating expenses in the annual comparison decreased by 4.7 percent, capital expenditures increased by 30 percent.
During the period of operation from June 2006, 399 million tons of crude oil (2.99 billion barrels) were transported via BTC as of the end of the first half of 2018, which was loaded into 3,916 tankers in Ceyhan and sent to the world market.
In the first half of 2018, BTC exported over 17 million tons (125 million barrels) of crude oil.
On July 13, 2006, the solemn opening ceremony of the largest energy project of the 21st century - the main export pipeline Baku-TbilisiCeyhan was held in Ceyhan.
On the construction of the pipeline, with a total length of 1,774 km from the Sangachal terminal to the Mediterranean port of Turkey Ceyhan, was spent $4 billion.
So far, BTC pipeline, the pumping capacity of which is 1.2 million barrels per day, has had strong safety and operational performance. Its efficiency and operational reliability has increased from 75 percent at the start up to the current level of 99.9 percent.
The shareholders of BTC Co, which was established on 1 August 2002 for the implementation of the project are: BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), TPAO (6,53 percent), Eni (5 percent), Total (5 percent), Itochu (3.4 percent), Inpex (2.5 percent), ExxonMobil (2.5 percent) and ONGC (2.36 percent).
The Azerbaijan International Operating Company (AIOC) spent $788 million to develop the block of Azeri-Chirag-Guneshli (ACG) fields located in the Azerbaijani sector of the Caspian Sea.
Operating expenses for the ACG project amounted to approximately $236 million, capital expenditures $552 million. In the first half of the year, operating expenses for the project increased by 2.6 percent year-on-year, capital expenditures decreased by 8 percent.
Proven oil reserves of ACG are estimated at 1.2 billion tons, while gas reserves reach 350 billion cubic meters.
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, Saudi Arabia) have participated in signing of the “Contract of the Century”.
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.
Shareholders of the ACG development include BP with 30.37 percent, AzACG - 25 percent, Chevron – 9.57 percent, Inpex – 9.31 percent, Equinor – 7.27 percent, ExxonMobil – 6.79 percent, TPAO- 5.73 percent, Itochu – 3.65 percent, ONGC Videsh Ltd. (OVL) – 2.31 percent.
BP-Azerbaijan reported that during this period, gas production from Shah Deniz decreased by 1.96 percent, condensate - by 8 percent compared to the corresponding period last year.
The capacity of Shah Deniz installations is 32 million cubic meters per day or about 10.9 billion cubic meters per year.
According to the information, drilling of SDA11 well on Shah Deniz Alfa platform was completed in the second quarter.
“Drilling and testing of SDD04 was completed with the help of the Istiglal drilling rig.” After that, the final work on the well SDG04 was started. With the help of the Maersk Explorer drilling rig drilling of the lower seams of the SDH02 well continues.
With the help of Maersk Explorer and Istiglal drilling rigs, 14 wells on the Shah Deniz Bravo platform have already been drilled.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserves are estimated at 1.2 trillion cubic meters of gas.
The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).
Moreover, the report says that from Sangachal terminal of Azerbaijan during the reporting period, in total, more than 141 million barrels of oil and condensate, including volumes of third parties, were exported.
During the reporting period, the average daily volume of gas exports from the Shahdeniz field from the terminal amounted to 27 million cubic meters (963 million cubic feet). This is 3.6 percent less than last year.
It should be noted that oil and gas from the fields Azeri-Chirag-Gunashli (ACG) and Shah Deniz through the underwater pipelines is delivered to the Sangachal terminal.
The capacity of the technical processing systems of the terminal is 1.2 million barrels of oil per day, and 32 million cubic meters for gas from the Shah Deniz field. The total volume of gas processing and export capacity (including associated gas with ACG) is 50 million cubic meters per day.
The gas is exported from the terminal, mainly through the South Caucasus Pipeline and the SOCARowned gas pipeline that connects the gas processing facilities of the terminal with the Azerigaz PU gas distribution system.