4.2 bln USD spent on "Shah Deniz" project last year

Baku. 21 February. REPORT.AZ/ "Shah Deniz" consortium spent 4.169 billion USD on project activities in 2016.

In 2016, Shah Deniz spent approximately $469 million in operating expenditure and about $3.7 billion in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project.

"Report informs referring to the "Shah Deniz" field operator "BP-Azerbaijan".

In 2016, Shah Deniz existing (Alpha) platform completed and handed over to production the SDA09 well and commenced deep-hole drilling operations on the SDA10 well, which are currently ongoing.

The Istiglal rig upgrade and commissioning was completed in mid-September. In the fourth quarter of 2016, the rig completed the SDC04 well, which is the first completion on the Shah Deniz Stage 2 project. The Heydar Aliyev rig drilled the reservoir sections of the SDG02 and SDG04 wells. It is now preparing to spud the SDF01 well to drill the top-hole section.

The above two rigs have already drilled 12 production wells in preparation for commencement of Shah Deniz Stage 2 and subsequent production ramp up. Drilling operations will continue to deliver all wells required to reach the planned plateau level.

The agreement on 'Shah Deniz' perspective area exploration, development and production sharing was signed June 4, 1996. 'Shah Deniz' production sharing agreement was ratified on October 17, 1996. Participants to the agreement are: BP (operator - 28.8%), AzSD (10%), SGC Upstream (6.7%), Petronas (15,5%), LUKoil (10%), NICO (10%) and TPAO (19%).