Unocal Okays Phase 3 Development of ACG Field in Caspian Sea


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 development."

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.
Related Companies
 Company: BP plcmore info


 - Billionaire Ratcliffe Hunts Oil to Repeat Chemicals Empire Build (May 24)
 - Woodside Sees Output Growing 15 Pct Over Next Three Years (May 23)
 - BP Sees Early Promise, Growing Investment In Mexico Energy (May 17)
 Company: Exxon Mobil Corporationmore info


 - Nigeria To Mediate In Dispute Between Exxon And Labor Unions (May 24)
 - Shell Shareholders Reject Emissions Target Proposal (May 23)
 - ExxonMobil, Total Discuss Offshore Drilling Opportunities In Greece (May 19)
 Company: Statoilmore info


 - Norway's Statoil Plays Down Risks Ahead Of Arctic Drilling (Apr 24)
 - Statoil Confident Brazil Deal To Go Ahead Despite Suspension (Apr 18)
 - Statoil Exec: Effective Leaders Should Empower People and Machines (Mar 24)
 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 Reports Smaller Loss As Oil Prices Rise, Costs Fall (Apr 26)
 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Oil, Gas Firms Make Global 100 Most Sustainable Corporations List (Jan 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
 - Devon Energy Plans To Divest $1B Assets; Profit Beats (May 2)
 - Devon Energy Beats Profit Estimates As Cost Cuts Pay Off (Feb 14)
 - E&P Companies Target Potential of STACK, SCOOP Plays (Aug 25)
 Company: Inpexmore info


 - Lukoil Finds Oil at Iraq Well (Feb 22)
 - Japan's Inpex Sticks To Australia Ichthys LNG Output Target (Feb 10)
 - Inpex, ADNOC Agree to Extend Offshore Abu Dhabi Joint Development Project (Jan 16)
 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
Related Articles


Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours