İqtisadiyyat

Talks underway on exploitation of natural gas in Azeri-Chiraq-Guneshli fields

18-01-2011 | 14:28        

  


Negotiations are underway with BP on exploitation of the gas deposits in the deep-sea bed area located near the Azeri, Chiraqli and Guneshli oil fields, production of which started based on the Contract of Century signed in 1994, Azerbaijani Minister of Industry and Energy Natiq Aliyev said. Another biggest gas deposit in the Azerbaijani sector of the Caspian Sea is situated in the Azeri-Chirag-Guneshli oil fields. According to the Contract of the Century, an agreement was signed in 1994 on exploitation of oil deposits, while there were no agreements on exploration of gas deposits. Speaking about it, Minister of Industry and Energy Natig Aliyev reminded that they knew about the existence of gas deposits at that time. Now BP, a consortium operator on exploration and production of oil deposits, against the background of the infrastructure created for secure transportation of the oil and gas produced off-shore to the coast and of growing need in the world for natural gas, shows interest in exploitation of deep gas. Natig Aliyev said that BP suggested exploration of these gas deposits in deep sea-bed. He hopes that negotiations will be fruitful. They estimate the volume of the deposits as 500 billon cubic meters. Natiq Aliyev also stated 16 million cubic meters of gas was predicted to be produced in the Shadeniz-2 field annually but this figure might reach 25 billion cubic meters. The first oil well of the Umid field with potential of 300 cubic meters proves that potential of the Babek field is 2 times more than the Umid. It is because the Babek is located deeper than the Umid. Thus, Azerbaijan’s gas reserves grow along with oil reserves. Confirmed gas reserves make up 2.2 trillion cubic meters. Last year, 51 million tons of oil and 27 billion cubic meters of gas were produced in Azerbaijan.