BP Spends More in the Caspian (correction)
(Clarifies that the sums of money were spent by the consortiums as a whole, not just operator BP.)
UK major BP, operator of Azeri, Chirag, Guneshli oil fields (ACG), Shah Deniz gas field (SD) as well as the South Caucasus pipeline (SCP), spent more money in that area in 2015, it said February 29.
In 2015, the consortium spent about $482mn in operating expenditure, up $82mn year-on-year; and $4.37bn in capital expenditure, up $470mn year on year in Shah Deniz gas field. The majority of it was associated with the Shah Deniz 2 (SD2) gas project.
Shah Deniz 1 (SD 1) produced 9.9bn m3, of which 6.65bn m3 were exported to Georgia (0.8 bn m3) and Turkey (5.85bn m3) in 2015. It also delivered 3.25bn m3 to Azerbaijan’s domestic markets.
SD2 is over 66% complete in terms of engineering, procurement and construction and remains on target for first gas from this phase in 2018. SD2 is to produce 16 bn m3/yr in total, split between Turkey (6bn m3/yr) and Europe (10bn m3/yr). As of end-2015, Shah Deniz has produced 67.7bn m3 of sales gas.
South Caucasus Pipeline
BP is also expanding the South Caucasus Pipeline which has been operational since late 2006, transporting SD 1 gas to Azerbaijan, Georgia and Turkey. The expansion, SCPX, will extend the capacity of SD 1 in Azerbaijan.
In 2015, the SCP consortium (including SCPX) spent about $47.5mn, down $2.5mn year on year in operating expenses and $1.1bn in capital expenditure, up $200mn year on year.
Building work on SCPX inside Azerbaijan has already started, while installing two gas compressors in Georgia is projected.
Shah Deniz and the SCP shareholders are: BP (28.8%), AzSCP (10%), SGC Midstream (6.7%), Petronas (15.5%), Lukoil (10%), Nico (10%) and TPAO (19%).
The report says that some $760mn went on operating expenses and $1.9bn on capital expenditure on Azeri-Chirag-Gunashli activities in 2015. During last year, some 3.2bn m3 of associated gas, extracted from ACG, were delivered to state Socar, which was up by 0.4bn m3 year on year.
ACG participating interests are: BP (35.8%), Socar (11.6%), Chevron (11.3%), Inpex (11%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Itochu (4.3%), ONGC Videsh (2.7%).