SOCAR wants BP to develop deep-lying horizons at Shah Deniz
BAKU. April 18 (Interfax) - Azerbaijan has asked BP to consider development of the deep-lying horizons of the Shah Deniz field in the Caspian, Khoshbakht Yusifzade, first vice president of State Oil Company of the Azerbaijani Republic (SOCAR), told journalists on Monday
"It will require drilling additional exploration wells under Phase 2 of the Shah Deniz project. These horizons must be developed, since they contain estimated gas reserves totaling approximately 300 bcm," he said. Proven reserves at the Shah Deniz field - currently 1.2 trillion cubic meters - would increase if exploration confirms the presence of reserves in the deep-lying horizons.
Shah Deniz is currently yielding 8.4 bcm of gas a year under Phase 1, he said.
"Phase 2 will boost output to 25 bcm a year," he said, adding that development of the deep-lying horizons is covered by the current production-sharing agreement (PSA).
The multinational consortium developing Shah Deniz includes project operator BP (25.5%), Statoil (25.5%), SOCAR (10%), Lukoil (10%), NICO (10%), Total (10%), and TPAO (9%).
Production under Phase 1 is sold under contracts with Turkey, Azerbaijan and Georgia and has seen construction of a 690-kilometer pipeline to Turkey (including 442 kilometers in Azerbaijan and 248 kilometers in Georgia.
Phase 2, which will cost an estimated $20 billion, will produce first gas in 2017.