BP Begins Production at West Azeri Field in the Caspian Sea


Azeri Field
(Click to Enlarge)
The Azerbaijan International Operating Company (AIOC), operated by BP, has begun oil production from the West Azeri platform Azeri Project Phase 2, as part of the Azeri-Chirag-Gunashli (ACG) field development, in the Azerbaijan sector of the Caspian Sea.

The parties to the Azeri-Chirag-Gunashli (ACG) Production Sharing Agreement are: BP (operator - 34.1%), Unocal (10.3%), SOCAR (10%), INPEX (10.0%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), Itochu (3.9%), Amerada Hess (2.7%).

Located in approximately 118 meters of water 100km east of Baku, West Azeri (WA) production began from the first of three pre-drilled production wells on Friday 30th December. Transiting the subsea pipeline to shore, WA oil production reached Sangachal on Tuesday, the January 3rd. Production will increase through 2006 as the other pre-drilled wells are brought online, prior to further platform drilling commencing later this year. On plateau the WA facility will add 300 000 barrels per day in addition to the plateau rate of 340 000 barrels of oil per day from Central Azeri.

"The start up of West Azeri is as important as our achievement of our first oil from Central Azeri last year. It marks the culmination of our efforts to consistently meet our target of delivering a platform a year between now and 2008," said David Woodward, BP's Associate President in Azerbaijan. "The start up of WA will contribute to the rapidly increasing volumes of oil from ACG flowing into BTC once it becomes fully operational in spring this year "I am proud to say that we have delivered WA oil four months ahead of schedule and this is thanks to our ACG project and operations teams' excellent performance building on a track record of planning, construction and operations delivery in the Caspian Sea. On this important day for Azerbaijan, BP and our ACG partners, I would like to recognise the hard work of more than ten thousand people, mostly from Azerbaijan, who have consistently delivered outstanding performance on this project over the past three years. I would also like to congratulate the government, our partners, employees, all the contractors and suppliers and everyone involved, on this tremendous achievement."

The WA facilities comprise a 48-slot production, drilling and quarters (PDQ) platform and a 30" oil pipeline tie-in to the onshore Sangachal Terminal.

Oil from WA will be transported via the new 30" subsea pipeline to the onshore Sangachal Terminal, which has been expanded, including three new crude oil storage tanks.

Associated gas produced from WA will flow via in-field gas subsea pipelines to the Compression and Water Injection Platform (C&WP) installed in Central Azeri for re-injection into the reservoir for pressure maintenance or used as fuel. Surplus gas will be exported via an existing gas subsea pipeline into the Sangachal Terminal and onward via the new gas export pipeline into the Azerigas system for domestic use.

The ACG Production Sharing Agreement (PSA), signed in September 1994, covers the 30 year development of the Azeri-Chirag-Gunashli contract area. It is estimated that 5.4 billion barrels of oil will be recovered during the PSA period. The field is being developed in several phases: Chirag has been producing since 1997 as part of the Early Oil Project (EOP). This was followed by Azeri Project Phase 1 - Central Azeri production in early 2005. Successive phases include West Azeri, which started production in 2006, and East Azeri, scheduled to come on stream in 2007 as Azeri Project Phase 2, with ACG Phase 3 - Deepwater Gunashli, already sanctioned and expected to begin production in 2008.

Related Companies
 Company: BP plcmore info


 - From a Little-Known Shale Play in New Mexico, BP Gets a Gusher (Aug 7)
 - Big Oil Seen Vulnerable to Fresh Slump Despite Growth at $50 (Aug 2)
 - BP's West Africa Partner Kosmos To List In London By End-September (Aug 2)
 Company: Exxon Mobil Corporationmore info


 - Exxon Misses Estimates as Cuts Fail to Offset Output Declines (Jul 28)
 - Exxon Fined for Russia Sanctions Violations Under Tillerson (Jul 20)
 - ExxonMobil Says Will Drop Discussions Over Indonesia's East Natuna (Jul 18)
 Company: Statoilmore info


 - Norway's Record July Gas Sales Could Lift Statoil Earnings (Aug 18)
 - European Oil Majors Seek To Harness US Offshore Wind (Aug 1)
 - Statoil Scales Down Exploration Plans For 2017 (Jul 27)
 Company: UNOCALmore info
 - Brenham Inks PSC Agreement for Equatorial Guinea Block (Dec 20)
 - PetroChina Is Set to Go It Alone (May 26)
 - KBR Scores Major FEED Contract for Chirag Oil Project in Caspian Sea (Mar 23)
 Company: Hess Corporationmore info


 - Hess Slashes 2017 Capital Budget After Quarterly Loss (Jul 26)
 - Suriname Signs Offshore Oil Deals with Exxon, Hess and Statoil (Jul 14)
 - Hess To Sell Permian EOR Assets To Occidental For $600 Million (Jun 19)
 Company: SOCARmore info
 - Azerbaijan's SOCAR Sees H2 2016 Net Profit At $298 MM (Jan 17)
 - SOCAR, AIOC Agree to Develop ACG Field (Dec 23)
 - Total, SOCAR Sign Absheron Development Agreement (Nov 22)
 Company: Devon Energymore info
 - Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 2)
 - Devon Energy Trims Full-Year Spending (Aug 1)
 - Devon Energy Plans To Divest $1B Assets; Profit Beats (May 2)
 Company: Inpexmore info


 - Australia's $180B LNG Megaproject Boom Enters Final Stretch (Aug 14)
 - Australia's $180 bln LNG Megaproject Boom Enters Final Stretch (Aug 14)
 - Inpex Says Floating Unit For Australia LNG Project To Set Sail Soon (Jul 10)
 Company: TPAOmore info


 - Turkey's TPAO Signs $1.5B Deal To Buy Total's Stake In Azeri Gas Project (May 30)
 - Turkey's TPAO Says In Talks With Exxon, OMV, MOL For Joint Oil Exploration (Feb 19)
 - Dragon Oil, TPAO, Ghazanfar Signs PSCs for 2 Blocks in Afghanistan (Oct 10)
 Company: Itochumore info
 - CITIC Resources, ITOCHU Sign MOU to Collaborate on E&P Projects (Jun 22)
 - North West Shelf LNG Tender Goes to BG, Itochu and Statoil (Jun 19)
 - Inpex Buys Stakes in Zapadno-Yaraktinsky, Bolshetirsky Blocks in Irkutsk (Sep 25)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Lead Operator Job
Expertise: Production Operator
Location: Dunn Center, ND
 
Measurement Technician A
Expertise: MWD / LWD|Production Technologist
Location: Houma, LA
 
Water Draw Technician
Expertise: Production Operator
Location: Houma, LA
 
search for more jobs

Brent Crude Oil : $52.72/BBL 3.31%
Light Crude Oil : $48.51/BBL 3.01%
Natural Gas : $2.89/MMBtu 1.36%
Updated in last 24 hours