BP-Azerbaijan: We talk with SOCAR over production volume in ACG

Baku. 1 December. REPORT.AZ/ We talk with the State Oil Company of the Azerbaijan Republic (SOCAR) over production volume in Azeri-Chirag-Gunashli (ACG) block of fields. Report informs, BP-Azerbaijan Vice-President on Public relations, International relations and Strategy Bakhtiyar Aslanbeyli said.

According to him, they are about to approve annual work plan and budget document: “We intend to hold production volume from ACG at the same level as in 2015. Previous year we were producing 634,000 barrels per day. Slightly lower volume - 630,000 barrels per day was envisaged for 2016. We should take into account that expenditures have reduced significantly. Despite reduction of expenditures, it demands a big mastery to keep production at this level”.

BP-Azerbaijan official noted that it will be very difficult to maintain production volume at the same level as in 2015-2016: “The field is aging. Productiveness of newly drilled wells is low and demands investment. After reaching agreement on extension of the term, new investments will be needed to keep the output in certain amount. Although the exact forecast on next year’s production volume is not available, I can say that it is very difficult to hold at the same level.”

Notably, oil production from ACG in 2015 was 31.3 million tons.

ACG Production Sharing Agreement (PSA) was signed on September 20, 1994. BP (operator – 35,8%), SOCAR (11,6%), Chevron (11,3%), İnpex (11%), Statoil (8,6%), ExxonMobil (8%), TPAO (6,8%), Itochu (4,3%), ONGC Videsh Ltd. (OVL, 2,7%) are stakeholders of ACG.