First time since quarter 3, 2010 Azerbaijan suspended oil extraction decline

During six months, 2016  BP-Azerbaijan company (operator of the Azeri-Chirag Guneshli (ACG) has extracted about 16 million tons of oil from the ACG contract area, sources from SOCAR told Turan.

From January to June 2015 the international consortium led by BP has extracted only 15.7 million tons of oil or on average 641,000 barrels of oil from the Caspian Sea.

Thanks to BP-Azerbaijan’s operations, during 6 months, 2016 oil extraction in the country, which started going down since quarter 3, 2010, has been stabilized.

The oil extraction decline has been prevented by pumping big volumes of associated gas into the beds. This year BP and its partners have doubled the volume. Oil extraction is much more profitable, than providing the Azeri side with free associated gas. At the foreign markets oil is much more expensive, than gas Azerbaijani uses for its own needs. On the other hands, Azerbaijan could compensate associated gas from the ACG by saving or by upgrading the gas and electric distribution networks, which still have big technical losses.—0--