Gas production increases by over 7% in Azerbaijan

From January through October 2022, Azerbaijan produced 38.4 billion cubic meters of natural gas, up 7.3% or 2.6 billion cubic meters from the first seven months of 2021, Report informs, citing the country’s Energy Ministry.

The ministry said 11.1 billion cubic meters of gas were produced from the Azeri-Chirag-Gunashli (ACG) field block and 20.7 billion cubic meters from Shah Deniz. The State Oil Company of Azerbaijan (SOCAR) accounted for 6.6 billion cubic meters of the produced gas.

Turkiye and Europe receive natural gas extracted from the Azerbaijani Shah Deniz field. Natural gas is supplied to the Turkish market through the South Caucasus Pipeline (Baku-Tbilisi-Erzurum) and TANAP. The first gas supplies through the Baku-Tbilisi-Erzurum pipeline entered the Turkish market in 2007. Commercial gas supplies to Turkiye through TANAP began on June 30, 2018.

The agreement on exploration, development and production sharing for the Shah Deniz field was signed on June 4, 1996. The Shah Deniz Production Sharing Agreement (PSA) was ratified on October 17, 1996. The field, located 70 km southeast of Baku, was discovered in 1999.

Shah Deniz's participating interests are: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19.00%), SOCAR (14.35%), NICO (10.00%) and SGC (6.67%).