BP achieved great success in Azerbaijani projects with minimum costs

Total investments in development of Azeri-Chirag-Guneshli and Shah-Deniz fields development as well as into construction of Baku-Tbilisi-Ceyhan oil pipeline and South Caucasian Pipeline gas pipeline since the beginning of their implementation till January 1, 2012 reached $34 billion, reads the report "BP Stable Development in Azerbaijan" during 2011.

Half of this capital was invested into the above-mentioned projects in the past five years. According to the BP report, from 2007 to 2011 $17,218 billion was invested into these projects.

Yesterday BP released data of capital investments into the Azeri-Chirag-Guneshli (ACG). According to this information, till January 1, 2012 over $27 billion has been invested into this project. ACG has become the most capital-intensive project, which BP has ever implemented in Azerbaijan and in the region. 79.4% of all investments of the British company fell to this project.

However, till January 1, 2012 BP has extracted 257.4 million tons or 1.9 billion barrels of oil on the contract area ACG located in the deep-water area of the Caspian Sea.

Till recently the investments into development of the first phase of development of Kashagan field were estimated at $38.6 billion with maximum production of about 20 million tons of oil a year, but now the companies plan to increase the budget up to $46 billion. The operation costs for extraction of 35 million tons of oil on ACG total $600-700 million, on Kashagan field at least $1 billion worth of investments will be needed to extract twice as much. The oil production has not started on Kashagan yet and the extraction of the first oil scheduled for December 2012 has been postponed again. The companies failed to find an agreement with the government.-0-