Following Shah-Deniz-2 BP to start extracting gas on deep-lying beds on Azeri-Chirag-Guneshli

Extraction of natural gas from the deep-lying beds on the Azeri-Chirag-Guneshli fields (ACG) could begin in 2019, Rovnag Abdullayev, President of State Oil Company of Azerbaijan (SOCAR), said today at the Caspian Oil & Gas-2013 international conference.

He said talks between SOCAR with the project partners are coming to the end. 300 billion cub.m. of natural gas is expected to be extracted from the deep-lying beds on the ACG.

Extraction of natural gas from the deep-lying beds on Azeri-Chirag-Guneshli (ACG) is not envisaged by the ACG agreement. The ACG shareholders have the right to start talks on development of these resources first. The contract signed on September 20, 1994 mentioned not only the contract area, but also the productive beds, which the foreign companies can use to extract oil. The volume of associated gas will be handed over to Azerbaijan free of charge.

The Risk Services Agreement (RSA) is planned to be signed for development of deep-lying beds of ACG. Before that SOCAR has always concluded production sharing agreements (PSA).

Gas is planned to be extracted from the Shah-Deniz Phase-2 project operated by BP in 2018.

ACG partners are BP - 35.78%, SOCAR (11.65%), Chevron - 11.27%, Inpex - 10.96%, Statoil (8.56%), ExxonMobil (8,0006%), TPAO (6.75%), Itochu - 4.3% and ONGC Videsh Ltd (2.72%).-0--