BP-Azerbaijan Company in the first quarter of 2017 extracted 2.4 bcm of gas from the Shah Deniz field. This is reported in the quarterly report by the company, which was made public.
As previously reported, in January-March 2016, gas production from the Shah Deniz field was 2.7 bcm. Thus, the volume of gas production from this field during the reporting period in 2017 decreased by 399 mcm or by 11.1%.
“Also in the first quarter of 2017, 0.55 million tons or 4.6 million barrels of condensate were produced from the Shah Deniz field. The condensate production decreased by 400,000 barrels. Currently, the maximum capacity of the existing production system at the field is 30 mcm of gas per day or 10.9 bcm per year,” BP-Azerbaijan notes.
According to the company, in the first quarter of 2017, the total cost of the Shah-Deniz project was $ 948 million (a 9.2% decline), of which operating costs were $ 113 million, and capital costs were $ 835 million. The bulk of the cost was spent on work within the Stage-2 development of the Shah Deniz field.
In the first quarter of 2017, transportation through the South Caucasus Gas Pipeline (SCP or Baku-Tbilisi-Erzurum) averaged 21.4 mcm of gas per day. The capital expenditures for the maintenance of SCP in the first quarter of 2017 amounted to $ 191 million, and the operating costs were $ 6 million.
* In 2016, gas production from the Shah Deniz field amounted to 10.7 bcm, and condensate production was 2.5 million tons.
** The contract for development of Shah Deniz was signed in Baku on June 4, 1996 and ratified by the Milli Majlis on October 17 of the same year. Participants in the Shah Deniz project are BP (operator, 28.8%), Petronas (15.5%), SOCAR (16.7%), Lukoil (10%), NICO (10%), and TPAO (19 %).