BP eyes two more fixed Azeri units

BP is close to completing the first three full phases of the ACG development, which involves six platforms that will exploit as much as 5.4 billion barrels of oil over their field life.

Production from the deep-water Guneshli project, which forms the third and final part of the development, is set to begin by the middle of the year.

BP Azerbaijan boss Bill Schrader has acknowledged that the platforms already installed on the Chirag and Azeri fields will be unable to exploit all the oil in the Fasila and Balakhany horizons.

Under BP's proposed new plan, new platforms will be located in the Chirag and Azeri fields and will target oil from the Balakhany production suite.

The project proposes building at least two additional platforms, according to Schrader. "We have been awaiting approval to start detailed engineering," he said, adding that construction could follow after the partners have sanctioned the project.

The Balakhany-8 zone, which contains mostly oil reserves, is mainly consentrated in the Azeri field, though BP has been developing this horizon in Chirag using its Chirag-1 platform.

BP-Azerbaijan vice president Bruce Luberski said: "We are producing oil from Balakhany only in the Chirag field."

The Balakhany reserves in the Azeri field have already been appraised during drilling of production wells in the central, east and west part of the Azeri field. Another zone, Balakhany-10 contains, mainly gas reserves that will be used for maintenance of reservoir pressure.

Socar sources said: "Additional Balakhany reserves in ACG are estimated at about 1.6 billion to 2 billion barrels of oil. That means total oil reserves in ACG are about 6 billion to 7.4 billion barrels."

Socar vice president Khoshbakht Yusifzade has said on several occasions that ACG reserves are equal to nearly 7 billion barrels, but BP has never officially confirmed that figure.

According to BP, the Balakhany development will be commercial only if it starts within a strict schedule.
Sources said: "It makes sense only if we start the work shortly. The ACG contract life runs to 2024 with an option to extend by another five years.

But if SOCAR and the Azeri government don't agree to prolong the contract we would not be able to recover additional investments. It is a complex question and we should agree all aspects beforehand."

/Today.Az/