Industry and Energy

Industry and Energy

Shah Deniz operating expenditure hits $74 million

19 August 2009 13:52 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. The Shah Deniz project, a gas and condensate development in the Azerbaijan sector of the Caspian Sea, spent $74 million in operating expenditure and $204 million in capital expenditure in the first half of 2009, said BP-Azerbaijan, operator of the project.

The project is planned to spend $264 million in operating expenditure and $369 million in capital expenditure for the full year of 2009.

The project spent $152 million in operating expenditure and $471 million in capital expenditure in 2008, said the company.

When it comes to output, the company said it produced 3.4 billion cubic meters of gas and 0.9 million tons of condensate in the first half.

â€œFive wells on Shah Deniz produce in total 19 million cubic meters of gas and 40 000 barrels of condensate on average a day. With bringing online new wells, Shah Deniz Phase 1 output will reach 8.6 billion cubic meters of gas a year and 45 000 barrels of condensate a day at its peak. Our target for 2009 is 7.5 billion cubic meters and 1.9 million tons of condensate,â€ said the company.

Shah Deniz Phase 2 output is expected to reach 30 billion cubic meters of gas a year.

Four wells at Shah Deniz produce 22 million cubic meters of gas per day. Shah Deniz Phase 2 is expected to achieve a landmark of 30 billion cubic meters per annum.
Shah Deniz participating interests are: BP (operator â€“ 25.5%), StatoilHydro (25.5%), SOCAR (10%), LUKOIL (10%), NICO (10%), Total (10%), and TPAO (9%).