Azerbaijan, Baku, April 14 / Trend /
BP (technical operator of Shah Deniz) has put into operation a fifth well in Shah Deniz oil and gas condensate field in the Azerbaijani section of the Caspian, a source in the oil industry said.
"The fifth well in Shah Deniz has been launched. The production has not increased yet as production from wells are suspended in terms for the preventive measures," a source said.
Shah Deniz daily production is 21-22 million cubic meters.
Daily capacity will increase up to 27-28 million cubic meters of gas per year after all five wells operate at the same time, a source said.
Gas is produced from Shah Deniz as a part of the first stage. More beneficial directions of realization of Azerbaijani gas as a part of the second stage is being searched. Gas output is expected to be increased up to 20 billion cubic meters per year in Shah Deniz II. About 9 billion cubic meters of gas is expected to be produced from the field in 2009.
SOCAR head Rovnag Abdullayev said earlier that Azerbaijan intends to sell gas at advantageous price for the country as a part of Shah Deniz II. SOCAR and partners on Shah Deniz conduct marketing studies to sign long-term contracts in 2009.
"We attach great importance on each pipeline and consider commercial terms of all options in an effort to sell our gas at a good price," said head of SOCAR, which posses share in Shah Deniz.
Partners on the development of Azerbaijani Shah Deniz field should choose most attractive sales markets for the gas from the Phase II to ensure best economic result, StatoilHydro President Kristian Hausken said. StatoilHydro operates Azerbaijan gas supply company which deals with the marketing of gas as part of the Shah Deniz Phase I.
"We are considering all geographic directions the gas may flow in and their potential long-term profitability. Gas routes can follow the current South Caucasus Pipeline west to Turkey, go north to Russia or south to Iran," Hausken said.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ВР (operator - 25.5percent), Statoil Hydro (25.5percent), SOCAR (10percent), LukAgip (10percent), NICO (10percent), Total (10percent), and TPAO (9percent).
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