Saturday, 2 March 2013

BP Azeri output by 7% in 2012

REUTERS

BAKU

BP Azerbaijan Azeri-Chirag-Guneshli the production (ACG) fields was from 7 percent in 2012, it said, a faster decline than that of the total Azeri production in a trend that has drawn criticism from president of the country.

But the British oil major export rose from the Shah-Deniz gas field, the largest in the country.

BP said in a news release on Friday that oil output on ACG 32.9 million tons in 2012, down from 35.4 million tonnes in 2011.

Oil production in the ACG oil fields, has the largest in Azerbaijan, voiced in the ex-Soviet Republic and asked President Ilham Aliyev to blame for BP of making "false promises".

Officials at BP and State energy company SOCAR say the geology of the country most important oil fields do not meet the original expectations dropped and they have cited maintenance and higher safety standards on BP after the Macondo oil spill in the Gulf of Mexico as reasons behind the waterfall of the past 18 months.

A drop that began to expand in 2011, Azerbaijan's oil and condensate production sank 5.3 percent to 42.98 million tonnes in 2012 from 45.45 million in 2011.

BP said on Friday that it exported 282.9 million barrels of oil by the ACG in 2012, down from 291.5 million barrels in 2011. The output using the Baku-Tbilisi-Ceyhan pipeline dropped to 246 million barrels last year from 257.3 million barrels in 2011.

In 2012, the ACG consortium led by BP about $ 725 million in operating expenses and $ 2.5 billion in capital spending.

BP plans in 2013, about 758 million in administrative expenditure while capital spending about unchanged should be.

In contrast, increased natural gas production from the Shah-Deniz gas field, also operated by BP, in 2012 to 7.73 billion cubic meters (bcm) of 6.67 bcm in 2011.

It also produced 2.0 million tonnes of condensate on Shah-Deniz, up from 1.8 million tonnes produced in 2011.

Azerbaijan the largest gas field, Shah-Deniz is being developed by the consortium partners BP, Statoil, Azerbaijani SOCAR, total and others. It is estimated at 1.2 trillion cubic feet of gas.

Shah-Deniz that I has been pumping gas since 2006, while gas from the second phase is expected to reach Europe with 2019, SOCAR said last month.

BP Shah-Deniz said I production was at present on plateau with manufacturing plants running at maximum capacity of 966 million standard cubic feet a day and about 55,000 barrels of condensate per day when the markets are available.

An average of 21.1 million standard cubic feet of gas Shah-Deniz is exported from the terminal daily in 2012.

In 2012 brought Shah-Deniz consortium 269 million dollars in operating expenses and $ 1.1 million in capital expenditures. Household expenditure expected to drop this year to $ 222 million but $ 2.7 billion capital expenditure will rise.

Total gas production in Azerbaijan increased 4.3 percent to 26.8 bcm last year from 25.7 bcm in 2011.

The former Soviet Republic ships its oil through Russia's Black Sea port of Novorossiisk five main routes: neighboring Georgia, Batumi and Kulevi ports, Supsa and Turkey Ceyhan.

Azerbaijan sells gas to the domestic market and to Georgia and Turkey via the Baku-Tbilisi-Erzurum pipeline also Russia.

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