TODAY.AZ / Business

Azerbaijan’s profit oil share to hit 60pct by late 2016

22 August 2016 [17:57] - TODAY.AZ

By Azernews

By Amina Nazarli

Some 404.1 million tons of oil and 123 billion cubic meters of associated gas have been produced at the Azeri-Chirag-Guneshli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea since November 1997.

First Vice President of Azerbaijan’s state oil company SOCAR, Khoshbakht Yusifzade announced about this at the opening of SOCAR summer school on August 22.

He said that the production on the block is carried out from 102 wells.

Yusifzade added that the monthly volume of production [from the block of fields] is 2.8 million tons of oil and 1.1 billion cubic meters of gas.

He noted that 224 million tons (55.43 percent) fall to the share of Azerbaijan’s profit oil of the total oil volume produced at the ACG.

Yusifzade emphasized that the share of Azerbaijan’s profit oil will reach 60 percent by late 2016.

Currently, the total proven oil reserves in Azerbaijan account to nearly two billion tons, the proven reserves of gas - 2.6 trillion cubic meters and projected volumes amount to nearly 5.4 billion cubic meters of gas and 4.5 billion tons of oil.

The contract for developing the ACG field was signed in 1994. ACG is a complex of six production platforms, namely Chirag-1, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag and two process, gas compression, water injection and utilities (PCWU) platforms, equipped with latest technologies.

The proven oil reserve of the block nears 1 billion tons. The field, which lies 120km off the coast of Azerbaijan is considered to be the largest oilfield in the Azerbaijan sector of the Caspian Sea. Investment in ACG had reached more than $32 billion by the end of the first quarter of 2016.

The shareholders of the project are BP (operator in the Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.28 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.

Yusifzade  further spoke about the Shah Deniz gas condensate field, saying that some 74 billion cubic meters (bcm) of gas and 19 million tons of condensate have been extracted since its exploitation.  

He added that the reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensate.

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

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and Trans-Adriatic Pipeline.


Gas output will increase from nine to 16 bcm per year within the implementation of the Shah Deniz-2 project.

URL: http://www.today.az/news/business/153584.html

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