According to the government forecasts, which were submitted to the Azerbaijan parliament together with the budget, after five years oil and condensate production in the country will drop to 39,736,000 tons.
The forecast does not disclose how much oil the companies will extract. Turan agency found out that production of condensate from the Shah-Deniz Phase 2 will total 2.5 million tons and State Oil Company of Azerbaijan (SOCAR) together with other partners of the production sharing agreements (PSA) plan to extract 7 million tons of oil. BP-Azerbaijan company – the main oil producer - plans to extract 30,236,000 tons.
In 2012 Azerbaijan extracted 42.9 million tons of oil and this year it expects to produce 42.5 million tons.
The specialists polled by Turan agency doubted that after five years production rate will be maintained at about 40 million tons a year (800,000 barrels a day). They said that the forecasts show that if huge capital is not invested into the Azeri-Chirag-Guneshli (ACG) project stabilization, there will be decline after 2015 and the production could be maintained at 550,000 barrels a day (27.5 million tons a year).
As far as production by State Oil Company of Azerbaijan (SOCAR) is concerned, from 2014 to 2016 SOCAR plans to drill about 140 operation wells on its offshore fields. However, the wells will be effective during 1-2 years, then they will be watered and the production will start declining, because all these wells are old and they are under operation over 30-40 years. Therefore, after five years SOCAR will have production decline, instead of rise.—0---
Economics
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