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Wednesday, 06 September 2017 19:00

President: Shah Deniz-2 is complete by 96% Featured

President: Shah Deniz-2 is complete by 96%

While addressing the ceremony of the launch of the flagship vessel “Khankendi”, President of the Republic of Azerbaijan Ilham Aliyev said that Shah Deniz-2 project is complete by over 96%. “24,000 new working places were opened in Azerbaijan in the course of the project implementation. The Shah Deniz-2 project envisages mounting of 2 new production platforms linked by a bridge to each other, drilling of at least 26 sibwater wells by means of two semisubmersible units, laying of a 500km long subwater pipeline at a depth of 500m and the expansion of the Sangachal terminal.  The main focus will be on the production of 16bcm per year and up to 120,000 barrels of condensate per day which remained in the formations. The project envisages annual supply of 6 bcm of gas to Turkey and 10 bcm of gas to Europe”, the President said, Caspian Energy News ( reports with reference to the press service of the President of Azerbaijan.

“A new contract on development of the Azeri-Chirag-Guneshli block of fields is planned to be signed in a few days. We will prolong our work on this field till 2050. This once again shows that Azerbaijan has very big oil reserves”, the President added.

It is noteworthy that the agreement on development of deep-lying formations of the Azeri-Chirag-Guneshli (ACG) block of fields envisages production of additional 233bcm of gas and 44 mln tonnes of condensate. This data is received following the results obtained from exploration wells which had been drilled earlier and do not relate to contract horizons.  

As early as 2007, the management of BP applied to the government of Azerbaijan to start negotiations on the new agreement about development of the lower horizons of ACG. The subject of negotiations was a legal form of the agreement as SOCAR insisted on the new form of the risk-service agreement instead of the production sharing agreement (psa) traditionally applied in Azerbaijan. In his recent speech President of Azerbaijan Ilham Aliyev stated that the contract would be signed if all the conditions of Azerbaijan were met.

According to the present PSA contract, ACG project partners got a right to develop oil horizons just till the Pereriv formation. Nadkirmakin and Podkirmakin formations, which excel the developed horizons in terms of capacities, lie deeper.

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Person in charge of the newsline: Fidan Isayeva 

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