BP Azerbaijan Plans to Spend $611 Million in Operations in 2008



For the full year 2007 ACG spent $445 million in operating expenditure and $2,822 million in capital expenditure. In 2008 we expect to spend $611 million in operating expenditure and $1,926 million in capital expenditure on ACG activities.

In 2007 we produced a total of over 244 million barrels (about 33 million tonnes and around 668,000 barrels per day average) from the Chirag, Central Azeri, West Azeri and East Azeri platforms. Of the 668,000 barrel total daily average production number 129,000 barrels came from Chirag, 244,000 barrels from Central Azeri, 171,000 barrels from West Azeri and 124,000 barrels from the East Azeri platform.

Our current total daily ACG production is about 790,000 barrels of oil per day. Our 2008 plan is to produce an average of 840,000 barrels per day (42 million tonnes pa) for the full year from the four existing platforms and the new Deep-water Gunashli (DWG) platform which started up earlier this month. Of this, about 134,000 barrels per day is expected from Chirag, 243,500 barrels per day from Central Azeri, 235,300 barrels per day from West Azeri, 144,400 barrels per day from East Azeri and 82,800 barrels per day from DWG.

Since the beginning of this year, supply of associated gas from the CA, WA and EA platforms has continued via the 28-in. gas subsea pipeline into the Sangachal Terminal and into Azerigas's national grid system for domestic use. Some of the associated gas produced from the Chirag platform has continued to flow to the SOCAR compression station at Oil Rocks via the existing 16" subsea gas pipeline. The rest of the associated gas from the ACG platforms has continued to flow via in-field subsea gas pipelines to the Compression and Water Injection Platform (C&WP) for re-injection to maintain pressure in the reservoir.

In 2007 we delivered about 2.4 billion standard cubic metres of ACG associated gas to SOCAR which was almost twice as much as we had planned for the full year (the initial plan was to deliver 1.4 billion cubic meters of associated gas to SOCAR). This was the result of a separate agreement between AIOC and SOCAR achieved in early 2007.

In 2008 we plan to deliver around 1.5 billion cubic metres (140 million scfd) of ACG associated gas to SOCAR. However since the beginning of this year we have been delivering over 160 million standard cubic feet (4.5 million cubic metres) per day of associated gas to SOCAR.


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