Shah Deniz gas condensate field produces 5.1 bln cum gas in first half year

Baku. 17 August. REPORT.AZ/ In the first half of 2017, Shah Deniz field produced about 5.1 billion standard cubic meters (bcm) of gas and 1.2 million tonnes (about 9.7 million barrels) of condensate.

Report informs, the field operator BP-Azerbaijan informed.

Compared to the same period last year gas production in the reporting period decreased by 5.6% and condensate production by 7.7%.

The existing Shah Deniz facilities’ production capacity is currently 30.0 million standard cubic meters of gas per day or around 10.9 bcm annually.

In the first half of 2017, Shah Deniz existing (Alpha) platform resumed drilling operations on the SDA11 well and these are currently ongoing.

The Istiglal drilling rig delivered the fourth well completion (SDC01 well) on the North Flank in the second quarter. The rig then moved to the West Flank SDD01 well location to perform four completion operations. The Maersk Explorer rig drilled the SDF01 lower section and moved to SDF02 well, where it is currently drilling the lower section of the well.

"The above two rigs have already drilled 13 wells since the Final Investment Decision (FID) and completed four of these on the North Flank in preparation for the 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", BP Azerbaijan reports.

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%).