Shah Deniz gas condensate field produced 2.4 bln cum gas in Q 1

Baku. 20 November. REPORT.AZ/ During the first three quarters of 2017, Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea has produced about 7,4 billion standard cubic metres (bcm) of gas and 1.7 million tons (about 14 mln barrels) of condensate.

Report informs, operator of the field "BP-Azerbaijan" informed.

Gas production in the reporting period decreased by 7,5% while condensate production decreased by 10,5% compared to the same period in 2016.

Notably, the existing Shah Deniz facilities’ production capacity is currently 30.0 mln standard cubic metres of gas per day or around 10.9 bcm annually.

In the third quarter of 2017, Shah Deniz existing (Alpha) platform completed the SDA10 well and brought it on production. The drilling operations on the SDA11 well were resumed and are currently ongoing.

By mid-September 2017, the Istiglal delivered the first completion in the West Flank on the SDD01 well. This was followed by completion operations on the SDD02 well which are currently ongoing. The Maersk Explorer rig is currently drilling the lower section of SDF02.

The above two rigs have already completed four wells on the North Flank and one well on the West Flank, and drilled nine wells in preparation for commencement of Shah Deniz Stage 2 production and subsequent ramp up. Drilling operations will continue to deliver all wells required to ramp up to plateau level.

Notably, Shah Deniz field is located on Caspian Sea shelf, 70 km south-east from Baku coast with depth of water changing between 50-500 meters. The field’s estimated natural gas deposits are about 1.2 trillion cubic meters. It is one of largest gas-condensate deposits in the world.

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%).