Production at the ACG falls, costs rise

During 6 months, 2013 122 million barrels or 16.4 million tons of oil was extracted on the Azeri-Chirag-Guneshli (ACG) field. During this period average daily production on the contract area totaled 672,000 barrels, reads the report of the international consortium (operated by BP).

From January to June 2012 124.5 million barrels or 16.8 million tons of oil was extracted on ACG. That time average daily production totaled 684,000 barrels. Considering that, during 6 months, 2013 oil production on ACG dropped by 2.4% or by 12,000 barrels a day.

But during 6 months $1,705,000,000 has been spent in the Azeri-Chirag-Guneshli project. Investments into ACG increased by $149.6 million against the same period in 2012.

During 6 months, 2013 the international consortium spent $374 million for the operation costs and $1,331,000,000 for the capital costs.

From January to June 2013 production on ACG decreased by 2.4%, while costs increased. This shows that after the production peak, which fell to 2010, the cost of production gradually grows.

Official Baku does not react to this trend, although a year ago, President Ilham Aliyev publicly declared BP guilty of this. Aliyev even named the amount of damage - 8 billion, but in all subsequent events the statements were disavowed, and the relationship was announced significantly good. -12B -