Its" getting more difficult to produce oil on ACG: costs grow, volume goes down

It is getting more difficult to produce oil on the Azeri-Chirag-Guneshli (ACG) fields, according to the production indexes of BP-Azerbaijan company.

According to the company, by April 1, 2013 there were 94 wells on the ACG.

14 wells, 10 of which are production ones and 4 water-injection ones, are in operation on the production platform Chirag-1. There are 21 wells (15 production ones, 5 gas-injection ones and 1 water-injection one) on the Central Azeri platform, 21 wells (16 production ones and 5 water-injection ones) on the Western Azeri, 16 wells (12 production and 4 water-injection ones) on Eastern Azeri and 22 wells (11 production ones and 11 water-injection ones) on the Deep-Water Guneshli.

In quarter 1, 2013 in average 662,000 barrels of oil a day was produced on 64 production wells and from January to March 2013 - 59.6 million barrels (8.06 million tons). The operation costs of the ACG project totaled $198 million.

In quarter 1, 20132 60 production wells operated on the ACG (30 of which technical ones), which extracted in average 771,800 barrels of oil a day. A year ago the international consortium spent only $169.1 million to extract the same volume of oil.

The peak of oil production on ACG fell to quarter 3, 2010. After that production on ACG kept declining.

* The Azeri-Chirag-Guneshli project partners are BP - 35.78%, Chevron - 11.27%, Inpex - 10.96%, Itochu - 4.3%, ExxonMobil (8,0006%), ONGC Videsh Ltd (2.72%), SOCAR (11.65%), Norwegian (8.66%) and Turkish TPAO (6.75%).--0--