BP reports deeper-pool Shah Deniz discovery

Eric Watkins
Senior Correspondent

LOS ANGELES, Nov. 15 -- BP PLC has reported a deeper-pool discovery in Shah Deniz gas-condensate field off Azerbaijan in a well it says justifies a second phase of development.

The SDX-04 appraisal and exploration well, 70 km southeast of Baku, discovered a high-pressure gas-condensate zone older than those now on production in the northern flank of the field.

BP said the well was drilled to a Caspian-record depth of more than 7,300 m in the southwestern part of Shah Deniz. It plans appraisal drilling in the next few years.

The well encountered gas and condensate in Pliocene Fasila and Balakhany VII zones, which are productive to the north.

On test, the well flowed at an equipment-restricted rate of 35 MMscfd.

BP said production from the second stage of development, plans for which depend on results of appraisal work, probably would be similar to or greater than first-phase output, which is to reach 8.6 billion cu m/year.

The field began intermittent production from the first of four predrilled wells last December and has been producing steadily since March.

Production flows from a 15-slot production, drilling, and quarters platform in 105 m of water through a 26-in. gas pipeline and 12-in. condensate pipeline to processing facilities in the Sangachal Terminal onshore. After processing, the gas enters the South Caucasus Pipeline between Azaerbaijan and Turkey, which was laid as part of the Shah Deniz development.

At midyear, Shah Deniz was producing more than 14.2 million cu m/day of gas and 30,000 b/d of condensate.

Partners in the Shah Deniz production sharing agreement are BP, operator, and StatoilHydro, 25.5% interests each; State Oil Company of Azerbaijan Republic, Lukoil, NICO, and Total, 10% each; and TPAO, 9%.

Contact Eric Watkins at [email protected].