Average Daily Oil Production at ACG Dropped by 1.5% in Q1

The average daily oil production from the marine project of Azeri-Chirag-Guneshli (ACG) totaled 651 thousand barrels in the first quarter of 2016. Compared with the same period last year, the average daily volume of oil production decreased by 10,000 barrels or by 1.51%. This was said in the quarterly report by BP-Azerbaijan (operator of the ACG project).

In Q1 of 2016 the oil production at the ACG block of fields was 59.2 million barrels, or 8 million tons. In Q1 of last year, the figures were, respectively, 59.5 million barrels and 8.08 million tons.

In order to stabilize oil production the international consortium had to increase the injection of associated gas in oil wells by 42.3%, drill 5 production wells and 2 water injection wells for the reported period.

According to BP-Azerbaijan reports, the company in the I quarter of 2016 reduced the amount of costs of the project ACG development in comparison with the same period last year by 15.4% - to $ 533 million.

Of this amount, ACG operating expenditure for the period amounted to $ 137 million, and capital expenditure – to $ 396 million.

At the same time the platform Chirag in I quarter 2016 produced an average of 46 thousand BD of crude oil (54 thousand barrels in the I quarter of 2015), from Central Azeri - 155 thousand BD (159 thousand BD), from Western Azeri - 116 thousand BD (129 thousand BD), from Eastern Azeri - 69 thousand barrels (71 thousand BD), from Deepwater Gunashli - 139 thousand BD (149 thousand BD), and from West Chirag - 126 thousand BD (99 thousand BD).

It was reported that oil production from the ACG fields in 2015 amounted to 31.3 million tons of oil.

The contract for the development of the ACG field was signed on 20 September 1994 and entered into force on 12 December of the same year.

* Participants in the project are: BP (35.78% -  the operator), Chevron (11.27%), Exxon Mobil (8%), Indian ONGC (2.72%), SOCAR (11.65%), Japanese Inpex Corp. (10.96%) and Itochu Oil (4.3%), Statoil (8.56%), and Turkish TPAO (6.75%).

Oil production from Chirag has been carried out from November 1997, from the central part of Azeri - from 13 February 2005, from Western Azeri – since 30 December 2005, from Eastern Azeri – since 21 October 2006, from Deepwater Guneshli – since early April 2008, and from Western Chirag – since January 29, 2014. -12B--