Gunashli-Chirag-Azeri Fields, Azerbaijan
(Click to Enlarge)
Unocal joined with other company representatives in signing a
resolution sanctioning the Phase 3 development of the giant Azeri-Chirag-
Deepwater Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.
"The sanctioning of the Phase 3 development is an important step toward
making this resource a million-barrel-per-day producing field," said Don
Hansen, vice president for International Energy Operations. "With this phase,
we will employ the lessons we learned from the development work to date in
Phases 1 and 2 and capitalize on the economies of standardized field
The Phase 3 project represents the next significant development phase of
the ACG production-sharing agreement (PSA), which is operated by Azerbaijan
International Operating Company (AIOC). Phase 3 offshore facilities will
comprise a 48-slot drilling, utilities and quarters platform that is
bridge-linked to a production, compression, water injection and utilities
platform in Deepwater Gunashli.
The start of oil production from Phase 3 is currently planned for
mid-2008. All associated gas, except for fuel requirements, will be delivered
to the State Oil Company of Azerbaijan (SOCAR). The field's gross recoverable
oil is estimated at around 5.4 billion barrels.
Unocal Khazar Ltd., a wholly owned Unocal subsidiary, has a 10.3-percent
interest in the ACG PSA and AIOC.
Ownership in the AGC PSA and AIOC also includes SOCAR (10% working
interest) and eight other foreign oil companies: BP (operator, 34.1%), INPEX
(10.0%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), Itochu
(3.9%), and Amerada Hess (2.7%).
The development of the ACG field has been divided into four parts: Early
Oil and Phases 1, 2 and 3. The Early Oil project is currently producing about
148,000 barrels of oil per day (gross). Phase 1 is expected to come on line
in 2005; Phase 2 in 2006. Total production from the fields is expected to
peak at more than 1.1 million barrels of oil per day in 2009 after Phase 3
comes on line.