Oil Production in Azerbaijan to Exceed 63mln Tons in 2010

Azerbaijan, Baku / Trend / In 2010, some 63.395mln tons of oil will be produced in Azerbaijan, with 54.745mln to be produced by the Azerbaijani International Operating Company (AIOC) and 8.650mln by the State Oil Company of Azerbaijan Republic (SOCAR), the Government reported.

According to forecasts, in 2008, oil production in Azerbaijan will make up 52.131mln tons, with 43.381mln tons to be produced by AIOC and 8.750mln tons by SOCAR.

Gas production is also expected to dramatically increase. In 2010, gas production will constitute 31.710bln cu m. In 2008, it will be 17.85bln cu m, with SOCAR's own gas to comprise 5.365bln cu m and the remaining volume to be produced in the contracted Azeri-Chirag-Ganashli (ACG) and Shah Deniz contact areas.

The volume of gas transferred to Azerbaijan from the Shah Deniz field will dramatically decrease in 2009. In 2007, it is expected to comprise 2.040bln cu m and in 2008 - 2.410bln cu m.

However, Azerbaijan will receive 1.500bln cu m from Shah Deniz in 2009, 2010 and 2011. And gas production in the field is expected to rise every year.

In 2008, gas production in Shah Deniz in the Azerbaijani sector of the Caspian Sea is forecast to amount to 7.020bln cu m. In 2007, gas production in the field will make up 3.760bln cu m.

In 2009, gas production in Shah Deniz will increase to 8.520bln cu m, which is practically the maximum production planned to be achieved within the framework of the first stage of the project on development of the field - 8.600bln cu m. In 2010 and 2011 gas production in the field within the framework of the first development stage will make up 8.610bln cu m. And within the framework of the second development stage gas production will amount to 16bln cu m of gas per year. Gas reserves in Shah Deniz are assessed in 1.2trln cu m.

Azerbaijan also plans to increase annual production of by-pass gas (except in 2008) in ACG which is developed by AIOC. In 2007, production is expected to comprise 3.530bln cu m, in 2008 - 2.800bln cu m, in 2009 - 3.970bln cu m, in 2010 - 5.140bln cu m and in 2011 - 5.910bln cu m.

Forecasts of oil and gas production in Azerbaijan for 2008-2011: