BP extracted a record volume of gas from Shah Deniz field

In 2014 BP-Azerbaijan extracted 9.9 billion cub.m. of gas and 2.3 million tons of condensate from the offshore field Shah Deniz located in the Azerbaijani sector of the Caspian Sea. The volume of average daily production totaled 27.1 million cub.m. of gas and 51,200 barrels of condensate.

Last year 9.8 billion cub.m. of gas and 2.48 million tons of condensate was extracted from this field.

Turan reported referring to the BP-Azerbaijan company’s report, in 2014 optimization of the technological installations allowed increasing maximum capacity of the production on the field from 27.3 up to 29.5 million cub.m. of gas a year.  This means that there is a possibility to increase production on Shah Deniz Phase 1 up to 10.7 billion cub.m., in case of market availability.

The company reported that in 2014 total volume of costs for the Shah Deniz project reached $4.3 billion (growth by 2.3 times against 2013), of which $0.4 billion fell to the operation costs and $3.9 billion to the capital costs. The main expenses fell to the Shah Deniz-2 projects.

* The contract for the Shah Deniz field development was signed in Baku on June 4, 1996 and ratified by the Milli Mejlis on October 17, 1996. The Shah Deniz project partners include BP  (operator with 28.8%), TPAO (19%), Petronas (15.5%), SOCAR (16.7%), LUKoil (10%) and NICO (10%).

The agreements on sale of gas have been concluded within the framework of the Shah Deniz Phase 1 betwen Turkey, Azerbaijan and Georgia. The 690-km-long Southern Caucasian pipeline has been built to export Azerbaijani gas to Turkey (442 km on the territory of Azerbaijan and 248 km on the territory of Georgia).—0—