BP reveals oil, gas production volumes in Azerbaijan

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    Azerbaijan produced 588,000 barrels of oil per day (b/d) from Azeri-Chirag-Gunashli block, BP report on 2017 year-end results reads.

    At the end of the year, 115 oil wells were producing, while 54 wells were used for gas and water injection.

    ACG participating interests are: BP (30.37 per cent), SOCAR (25.0 per cent), Chevron (9.57 per cent), INPEX (9.31 per cent), Statoil (7.27 per cent), ExxonMobil (6.79 per cent), TPAO (5.73 per cent), ITOCHU (3.65 per cent), ONGC Videsh Limited (OVL) (2.31 per cent).

    In 2017, BP spent more than $456 million in operating expenditure and about $1.176 billion in capital expenditure on ACG activities.

    On September 14, 2017 the Azerbaijan Government and SOCAR, together with the international co-venturers signed the amended and restated ACG PSA. The contract was ratified by the Parliament of Azerbaijan on October 31.

    Further, the report says that Azerbaijan produced about 10.2 billion standard cubic metres (bcm) of gas and 2.4 million tons (about 19 million barrels) of condensate the Shah Deniz field in 2017 compared to around 10.7 billion cubic meters of gas and 2.5 million tons of condensate in 2016.

    The existing Shah Deniz facilities’ production capacity is currently 30.0 million standard cubic metres of gas per day or around 10.9bcma.

    BP Azerbaijan is the operator of the Shah Deniz field.

    In August 2017 production on the Shah Deniz field was suspended in connection with the preventive work on the platform.

    In 2017, Shah Deniz spent approximately $451 million in operating expenditure and about $2.88 billion in capital expenditure, the majority of which was associated with the Shah Deniz 2 project.

    Shah Deniz field’s reserves are estimated at 1.2 trillion cubic meters of gas.

    A contract for development of the Shah Deniz offshore field was signed on June 4, 1996.

    The shareholders in the contract are BP (operator – 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).

    The report also is touching upon Shah Deniz 2 project and South Caucasus Pipeline Expansion (SCPX), saying that 2017 was a great year for the Shah Deniz 2 and South Caucasus Pipeline Expansion (SCPX) projects.

    Both projects achieved significant construction, commissioning and handover milestones across the gas value chain, safely executing over 45 million man-hours of work in the process. The projects are now entering the start-up phase in the run up to achieving first gas in 2018.

    Shah Deniz 2 first gas scope is now 99 per cent complete, in terms of engineering, procurement, construction and commissioning.

    The South Caucasus Pipeline (SCP) spent more than $29 million in operating expenditure and about $784 million in capital expenditure.

    The pipeline has been operational since late 2006, transporting Shah Deniz gas to Azerbaijan, Georgia and Turkey.

    SCP’s daily average throughput was about 20.5 million cubic metres of gas per day during 2017.

    The SCP Co. shareholders are: BP (28.8 per cent), TPAO (19 per cent),AzSCP (10.0 per cent), SGC Midstream (6.7 per cent), PETRONAS (15.5 per cent), LUKOIL (10 per cent) and NICO (10 per cent).

    BP reports that Baku-Tbilisi-Ceyhan (BTC) spent approximately $133 million in operating expenditure and about $29 million in capital expenditure in 2017.

    Since the 1,768km BTC pipeline became operational in June 2006 till the end 2017 it carried a total of about 2.87 billion barrels (about 383 million tonnes) of crude oil loaded on 3,758 tankers and sent to world markets.

    During 2017, BTC exported around 256 million barrels (about 34 million tonnes) of crude oil loaded on 333 tankers at Ceyhan.

    The BTC pipeline currently carries mainly ACG crude oil and Shah Deniz condensate from Azerbaijan. In addition, other volumes of crude oil and condensate continue to be transported via BTC, including volumes from Turkmenistan and Kazakhstan.

    The BTC Co. shareholders are: BP (30.1 per cent); AzBTC (25.00 per cent); Chevron (8.90 per cent); Statoil (8.71 per cent); TPAO (6.53 per cent); Eni (5.00 per cent); Total (5.00 per cent), ITOCHU (3.40 per cent); INPEX (2.50 per cent), ExxonMobil (2.50 per cent) and ONGC (BTC) Limited(2.36 per cent).

    Further, the report gives information about the Sangachal Terminal.

    During 2017, the Sangachal terminal exported more than 283 million barrels of oil, including third party volumes. Of this, more than 253 million barrels were exported through BTC, 28 million barrels through the Western Route Export Pipeline (WREP), and more than 2 million barrels via a separate condensate export line, according to the report.

    The daily capacity of the Terminal’s processing systems is currently 1.2 million barrels of crude oil and about 30 million standard cubic metres of Shah Deniz gas, while overall processing and export capacity for gas, including ACG associated gas is around 50 million standard cubic metres per day.

    On average, about 27.5 million standard cubic metres (about 972 million standard cubic feet) of Shah Deniz gas was exported from the Terminal daily during 2017.

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