TODAY.AZ / Business

BP: Azerbaijan effectively manages its oil & gas resources

25 April 2019 [16:43] - TODAY.AZ

By Azernews


By Leman Mammadova

The Innovation Agency under the Ministry of Transport, Communications and High Technologies organized a global event called "Falcons Summit" in Baku on April 24.

The event, which will last until April 26, aims to create new opportunities for startup companies to increase capital and establish business relations with major investors, business leaders, international organizations and government officials.

During his speech at the event, BP Azerbaijan Vice President Bakhtiyar Aslanbayli said that Azerbaijan has the least energy sources in the Caspian basin; however, it demonstrates the most effective management of these resources.

In his words, BP and partners have invested over $70 billion in Azerbaijan in the past 27 years.

“Over these years, 3.5 billion barrels of oil have been extracted from the Azeri-Chirag-Gunashli block (ACG), and the consortium’s investments here reached to $36 billion. At the same time, 44 billion cubic meters of associated gas was extracted and donated to the state. Total gas production in the Shah Deniz field is 100 billion cubic meters,” he added.

Aslanbayli stressed that BP invests substantial funds in Azerbaijan and will continue to invest further thanks to the conditions created for investors in Azerbaijan.

He said that Azerbaijan is the only country among the Caspian littoral states that has never unilaterally changed the terms of the signed agreements.

“So far, 36 Production Sharing Agreements (PSA) have been signed. Some of them are already in force. None of these oil agreements has been unilaterally amended by the government without the investor’s consent,” Aslanbayli noted.

BP is one of the world's most renowned oil and gas suppliers. It has been managing large projects for exploration, development and transportation in oil and gas fields in Azerbaijan since 1992.

BP and SOCAR have long-term cooperation in the oil and gas industry of Azerbaijan. BP Azerbaijan is the operator of ACG, Shah Deniz, Shallow Water Absheron Peninsula, Shafag-Asiman and Gobustan fields.

BP and Azerbaijan are also cooperating on the renewable energy development opportunities.

Recently, BP announced a $500-million extension to its drilling and engineering contract in Azerbaijan. The contract covers offshore operations and maintenance activities for seven platform rigs operated by BP including the Central, East and West Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations.

BP is also ready to consider the purchase of Exxon and Chevron shares in Azerbaijan's project on the development of ACG block.

ACG is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997. The new agreement signed in 2017 provides for the development of the field until 2050.

More than $36 billion has been invested into the development of ACG since the original PSA was signed in 1994.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.

ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Equinor - 7.27 percent; ExxonMobil - 6.79 percent; TPAO - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.

Recently, the next stage of development of the ACG field - Azeri Central East (ACE) project - has been sanctioned. The $6 billion development includes a new offshore platform and facilities designed to process up to 100,000 barrels of oil per day. The project is expected to achieve first production in 2023 and produce up to 300 million barrels over its lifetime.

According to Wood Mackenzie, Azerbaijan will become the 5th largest source of production in BP's global portfolio when oil production will begin within the Azeri Central East project.

URL: http://www.today.az/news/business/181838.html

Print version

Views: 547

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: