Page 12 - FSUOGM Week 50 2021

FSUOGM FSUOGM

held some 20% more gas. cooperation in the field of renewable energy 2017, a new contract was signed in Baku for
In 2020 the storage bottomed out on sources (RES). the development of the ACG block, extended
March 24, with tanks holding 30% of their SOCAR and Total signed an agreement until 2050.
capacity. If this year follows the same trends as on November 21, 2016, on defining the main The participants in the new contract are
last year the heating season will end in the last contractual and commercial terms of the first British BP (project operator, 30.37%), SOCAR
week of March 2022 with tanks only 10% full stage of development of the Absheron gas (25%), Hungarian MOL (9.57%), American
– their lowest level in a decade. condensate field. The contract was signed for ExxonMobil (6.79%), Indian ONGC (2.31%),
a period of 30 years. The contract area is 747 Japanese Inpex Corp. (9.31%) and ITOCHU
sq. km. Oil (3.65%), Norwegian Equinor (7.27%),
Kazakhstan producing 12% by the Joint Absheron Petroleum Operating Turkish TPAO (5.73%).
The Absheron field is being developed
The contract for the development of the
below OPEC+ oil capacity Company (JOCAP), established by SOCAR Shah Deniz field was signed in Baku on June
4, 1996, and ratified by the parliament on
Absheron (50%) and TOTAL E&P Absheron
Kazakhstan is currently producing 12% (50%). The Absheron block is located 100 October 17 of the same year. The participants
below its 1.7mn oil barrels per day capacity km from Baku at a depth of 500 metres. in the Shah Deniz project are: BP (operator,
(bpd) under the OPEC+ agreement, Murat SOCAR and TOTAL completed drilling of 28.8%), Petronas (15.5%), SOCAR (16.7%),
Zhurebekov, the country’s first vice-minister an ABD-001 production and appraisal wells LUKOIL (10%), NICO (10%), TPAO (19%).
of energy, told Reuters on the sidelines of the with a depth of 7411 metres in the Absheron The Oil Fund of Azerbaijan, established
World Petroleum Congress in Houston. He field in 2019. The reserves of the field amount in December 1999, accumulates revenues
added that reaching maximum permitted to 350-360 bcm of gas and 100mn tonnes of from the implementation of oil contracts,
levels “wouldn’t happen overnight.” condensate; its development will be carried in particular from the sale of profitable oil
OPEC+ comprises of the Organisation of out in stages. and gas from the state, transit tariffs for the
the Petroleum Exporting Countries (OPEC) At the first stage, the production volume transportation of oil and gas through the
and allies, including Kazakhstan. Last week, will amount to 1.5 bcm per year. At its peak, country, from the lease of state property, etc..
OPEC+ rolled over a previous plan to increase the project can produce about 5 bcm of gas
output in January by 400,000 bpd, despite per year. All gas produced within the first
fears that a US release from crude strategic stage will be directed to the domestic market
reserves and the new Omicron coronavirus of Azerbaijan. Also, about 10 thousand barrels Shah Deniz output in 2022 to
variant would lead to troubles with oil prices. of condensate will be produced at the field
“We are keen to raise production, like other every day. increase by 7%
producing countries are, but we are sticking
with the status quo,” Zhurebekov said. Gas production from the Shah Deniz field in
“Increasing production depends on the SOFAZ revenues from ACG the Azerbaijani sector of the Caspian Sea for
situation of the pandemic, we will have to wait 2022 is projected at 22.8 bcm, which is 7%
and see,” he added. block up 58% in 11M-2021 higher than the forecast for 2021.
Kazakhstan would be able to add an It is reported that condensate production
estimated 250,000 bpd of production to global Revenues to the State Oil Fund of Azerbaijan at Shah Deniz in 2022 is projected at 33.3mn
oil supply over the coming years, according to (SOFAZ) from the sale of profitable oil from barrels (an increase in comparison with a
IHS Markit. the Azeri-Chirag-Guneshli (ACG) block forecast indicator for 2021 of 4.7%) in the
and condensate from the Shah Deniz field conclusion of the Accounts Chamber of
in January-November 2021 amounted to Azerbaijan on the budget of the State Oil
Aliyev meets TotalEnergies $5.5bn, which is 53.7% higher than the same Fund (SOFAZ) for 2022. BP-Azerbaijan
period last year, according to the latest report
produced 16 bcm of gas from the Shah
exploration chief in Baku by SOFAZ. Of this, SOFAZ’s revenues from Deniz field in January-September 2021 (an
increase of 20.3% from the same period 2020).
the sale of Azerbaijan’s profitable oil from the
Azerbaijan President Ilham Aliyev met ACG block amounted to $5.3bn (an increase Condensate production in the nine months
Arnaud Breuillac, President of the French of 58%). of 2021 amounted to approximately 24mn
company TotalEnergies for exploration and SOFAZ’s revenues from the sale of barrels (3mn tonnes), which is 11.1% higher
production, on December 7 to discuss the profitable gas and condensate produced from than the same period last year.
future of the Absheron field. The visit was also the Shah Deniz field amounted to $730mn As reported, in 2020 BP-Azerbaijan
a farewell one for Breuillac, who said at the (an increase of 2.6 times), including revenues produced 18.1 bcm of gas (an increase of
meeting that he is completing his tenure as from the sale of condensate of $278mn (an 7.7%) and 3.6mn tonnes of condensate (an
president of TotalEnergies for exploration and increase of 35.7%). increase of 2.8%) or 29mn barrels from the
production, according to the information on According to the fund, the total receipts Shah Deniz field.
the website of the President of Azerbaijan. for the period to SOFAZ from the sale of The contract for the development of the
“The sides expressed the hope that the Azerbaijan’s profitable oil from the ACG Shah Deniz field was signed in Baku on June
first gas to be produced at the Absheron field block for the period from 2001 to December 4, 1996, and ratified by the parliament on
in about a year [in 2022] will contribute to 1, 2021, amounted to $154bn; and the total October 17 of the same year. The participants
meeting the domestic demand for gas in receipts from the sale of profitable gas and in the Shah Deniz project are: BP (operator,
Azerbaijan due to the industrial development condensate from the Shah Deniz field from 28.8%), Petronas (15.5%), SOCAR (16.7%),
and population growth of the country, will 2007 to 1 December 2021 amounted to $4bn. LUKOIL (10%), NICO (10%), TPAO (19%).
increase the export potential and access to The contract for the development of the Currently, gas production from the Shah
new markets, as well as ensure the energy Azeri, Chirag fields and the deep-water part Deniz field is carried out from the Alpha
security of Europe,” the statement said. of Guneshli was signed on September 20, platform as part of Stage-1 and from the Bravo
Aliyev and Breuillac also exchanged views 1994, and entered into force on December 12 platform as part of Stage-2.
on the relationship between Azerbaijan and of the same year. This agreement was set to
TotalEnergies, as well as the prospects for expire in 2024. However, on September 14,

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