BP Increased Gas Production From the Shah Deniz Field by 17% In the First Quarter
In the first quarter of 2023, BP-Azerbaijan produced 7 billion cubic meters of gas from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea, which is 16.7% more than in January-March 2022, Interfax-Azerbaijan was told in a press release. company service.
The Shah Deniz field also produced approximately 9 million barrels of condensate (more than 1 million tons), which is in line with the figure for the first quarter of 2022.
“Currently, the field’s production capacity is approximately 74 million cubic meters per day, or more than 27 billion cubic meters per year,” the company said.
The costs of the Shah Deniz consortium in the first quarter of 2023 as part of the development of this field amounted to $872 million (an increase of 2.95%). At the same time, operating costs for the project exceeded $678 billion, capital costs – $194 million.
The company also reported that through the South Caucasus Pipeline (SKTM or Baku-Tbilisi-Erzerum – IF) transportation averaged 61.6 million cubic meters of gas per day (in January-March 2022 – 56.2 million cubic meters per day) . Operating costs for servicing YuKTM in January-March 2023 amounted to $20 million, capital costs exceeded $2 million.
The contract for the development of the Shah Deniz field was signed in Baku on June 4, 1996 and ratified by the Milli Majlis on October 17 of the same year.
According to updated information from BP-Azerbaijan, the parties’ equity participation in the contract is currently as follows: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19%), NICO (10%) and CJSC “Cenub Qaz Dehlizi” (21.02%).
Currently, gas and condensate production from the Shah Deniz field is carried out from the Alpha platform as part of Stage-1 and from the Bravo platform as part of Stage-2. Gas production from the Shah Deniz field began in December 2006.
In 2022, 25.2 billion cubic meters of gas (+11.5% from 2021) and 4.4 million tons of condensate (+4.8%) were produced from the Shah Deniz field.
SKTM is a component of the Southern Gas Corridor. The pipeline has been operating since the end of 2006, transporting Azerbaijani gas from Stage-1 of the Shah Deniz field development to Georgia, and since July 2007 to Turkey. Since 2019, the throughput of the pipeline has been 29 million cubic meters of gas per day. In 2020, gas supplies to Europe began through the gas pipeline.
The length of the pipeline is 691 km, of which 443 km in Azerbaijan and 248 km in Georgia.
Shareholders of SCP Co. are: BP (29.99%), TPAO (19%), Cenub Qaz Dehlizi CJSC (21.02%), LUKOIL (19.99%), NIKO (10%).
