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During the first half of 2010 Shah Deniz field of Azerbaijan produced 3.6 billion cubic meters of gas

10 August 2010 12:16 (UTC +04:00)

Baku. Rashad Suleymanov â€“ APA-Economics. During the first half of 2010 Shah Deniz field in the Azerbaijan sector of the Caspian Sea produced about 3.6 billion cubic meters (about 127 billion cubic feet) of gas and 1 million tonnes (7.7 million barrels) of condensate or about 20 million cubic meters of gas per day (700 million standard cubic feet per day) and about 42.700 barrels of condensate per day.

For the full year it is planned to produce 7.6 billion cubic meters (around 269 billion cubic feet) of gas and 2.01 million tonnes (around 16 million barrels) of condensate.

Since the start of Shah Deniz production in late 2006 till the end of the first half of 2010 about 42.4 million barrels (about 5.3 million tonnes) of Shah Deniz condensate was exported to world markets. During the first half the field continued to produce from four wells to off-take points in Azerbaijan, Georgia and the Turkish border. The gas from Shah Deniz Stage 1 continues to be sold to Azerbaijan, GOGC (Georgia), BOTAS and the BTC Company.

â€œProduction will increase as new platform-drilled wells are brought on stream over the next few years. Plateau production from Stage 1 is expected to be 8.6 billion cubic meters of gas per annum and approximately 45,000 b/d of condensate. Early this year we completed commissioning the new wells system and in February we spudded the sixth production well, SDA-06 from the platform. In addition, we will conduct surveillance operations on SDA-04 during the fourth quarter of 2010. Engineering studies and cost estimates have continued during the first half to advance the Shah Deniz stage 2 and associated South Caucasus pipeline expansion projects. These works will continue throughout 2010.â€ the company said.

During the first half Shah Deniz spent $ 81.3 million in operating expenditure and $162.2million in capital expenditure. For the full year it is planned to spend $177.8 million in operating expenditure and $604.8 million in capital expenditure on Shah Deniz activities.

Shah Deniz participating interests are: BP (operator â€“ 25.5%), Statoil (25.5%), SOCAR (10%), LUKOIL (10%), NICO (10%), Total (10%), and TPAO (9%).