Azerbaijan International Operating Co. (AIOC) believes a Chirag-1 platform in the Caspian Sea can be used in development of the Chirag and Azeri discoveries and deepwater parts of Guneshli field.
AIOC is a group of western oil companies planning a $8 billion phased development of the three finds, which hold estimated reserves of 3.8 billion bbl of oil (see map, OGJ, Jan. 30, p. 33).
AIOC member BP Exploration Operating Co. Ltd. said the Chirag-1 platform includes a jacket that is reusable and an incomplete set of outdated processing modules. The platform has never been operational. A BP official told Oil & Gas Journal the group's view is that the modules can be brought back to shore to be rebuilt as an initial separation unit.
With addition of drilling equipment, the structure would serve as an early production platform. Liquids could be sent to shore through existing shallow water Guneshli platforms.
AIOC is completing jacket inspections.
The next big landmark for the project will be a meeting of partners in October, when an early oil export route is to be decided.
The BP official said exports via Russia, Georgia, and Iran are under study, but there is no indication of a preference.
Another project sought
Meanwhile, a combine of BP and two partners is negotiating with State Oil Co. of Azerbaijan Republic (Socar) for exploration and production rights to a prospect in the Caspian Sea off Azerbaijan.
Focus of the talks between BP, Norway's Den norske stats oljeselskap AS, and Turkish Petroleum Corp. on one side and Socar on the other is the Shak Deniz prospect. It lies southwest of the Guneshli-Chirag-Azeri complex.
The BP official said Socar estimates more than 2 billion bbl of oil in place for Shak Deniz, but this is based only on seismic data. No drilling has occurred to date.
"We are not certain of the size of Shak Deniz," the official said, "but it appears to be sizable and may be comparable to Guneshli-Chirag-Azeri."
BP is said to hope for a Shak Deniz production sharing contract similar to the one Guneshli-Chirag-Azeri. Experience of negotiations with Socar shows that the number of partners in Shak Deniz is likely to grow as talks progress.
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