SOCAR divulges free gas volumes on Azeri-Chirag-Guneshli block

There are approximately 250-300 billion cubic metres of free gas in the block of Azeri-Chirag-Guneshli field, the State Oil Company of the Azerbaijani Republic (SOCAR) first Vice President for Geology, Geophysics and Development Khoshbakht Yusifzade said at the 3rd Caspian Oil and Gas Trade and Transport Conference in Baku.

"The negotiations are being held to produce free gas. BP wants to extract free gas. But other companies may also be involved into the process," Yusifzade said.

"We are reviewing commercial issues. We will choose the most beneficial proposal," SOCAR Vice President said.

SOCAR is developing proposals on gas production in the fields, which will be presented to partners of the Azerbaijani International Operation Company (AIOC). If AIOC partners refuse SOCAR's proposal, then the company will attract other companies.

Deep gas fields will be developed within the framework of a new Production Sharing Agreement (PSA).

Under the agreement, which was signed with Azerbaijan in 1994, BP and its partners will develop oil horizons to Pereriv series. Lower horizons will be developed in accordance with a new agreement. There are hydrocarbon resources in Nadkirmakin, Podkirmakin and Gala series. According to Azerbaijani geologists, this is a gas and condensate. There may be discovered an oil ring, which will be additional liquid hydrocarbon resources.

Participants of the project on development of huge Azeri-Chirag-Guneshli offshore field include BP - operator with 34.1367% of stakes, ChevronTexaco - 10.2814%, SOCAR - 10%, INPEX -
10%, Statoil - 8.5633%, ExxonMobil - 8.006%, TPAO - 6.75%, Devon Energy - 5.6262%, Itochu - 3.9205% and Delta Hess - 2.7213%.

/Trend Capital/