Shah Deniz gas, condensate production restarted

Uchenna Izundu
International Editor

LONDON, Jan. 17 -- Gas production has resumed from the first well at the Shah Deniz gas field off Azerbaijan, a BP spokesman told OGJ. The project was shut in late in December because of problems with pressures in the wells (OGJ Online, Jan. 10, 2007).

According to press reports from Azerbaijan, State Oil Co. of Azerbaijan, a partner in Shah Deniz, said the field is producing 3.2 million cu m/day of gas and 1,300 tonnes/day of gas condensate.

The $4.5 billion project, in the Azerbaijan sector of the Caspian Sea, will export gas to Azerbaijan, Georgia, and Turkey via the $1.3 billion, 700 MMcfd South Caucasian Pipeline.

Georgia and Azerbaijan have been eager to receive the gas following the recent demands by Russia's OAO Gazprom for higher gas prices. Shah Deniz represents a degree of independence from Russia. But Georgia was forced to sign temporary gas supply deals with Gazprom at prices it considered exorbitant in December while Shah Deniz gas production was suspended.

The BP spokesman said Shah Deniz will continue to ramp up production to plateau levels next year, and the field is expected to produce 8.6 billion cu m of gas in the winter of 2007-08.

Shah Deniz holds 25-35 tcf of gas and in Stage 1 will produce 37,000 b/d of condensate, which will be shipped to Ceyhan, Turkey, for processing (OGJ, Aug. 21, 2000, p. 68).

Contact Uchenna Izundu at uchennai@pennwell.com.

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