ECONOMY
BP Azerbaijan output falls
Baku, August 25 (AZERTAC). BP Plc (BP - Analyst Report) experienced a downfall in its first half 2011 production level in Azerbaijan. A drop in gas demand during summer as well as maintenance activities led to the production decline.
The BP-led consortium Azerbaijan International Operation Company (AIOC) highlighted that its Chirag, Azeri and Guneshli (ACG) oilfields in the Caspian Sea produced 19.0 million tones (140.4 million barrels) of oil during the period January-June 2011, down 5.9% from the year-earlier level of 20.2 million tones.
Additionally, during the first half of 2011, AIOC-operated Shah Deniz gas field produced 3.07 billion cubic meters (Bcm) (more than 108.4 billion cubic feet) of gas, down from 3.6 Bcm in the same period a year ago.
The offshore Shah Deniz field is operated by the British oil giant with a 25.5% share, with the other partners being Statoil ASA (STO - Analyst Report), NICO, Total SA (TOT - Analyst Report), LukAgip, TPAO and SOCAR. On the other hand, ACG oilfields are divided between the operator BP with 35.8% share and Chevron Corp. (CVX - Analyst Report), Inpex, SOCAR, Statoil, ExxonMobil Corporation (XOM - Analyst Report), TPAO, Itocu and Hess Corporation (HES - Analyst Report).
BP Azerbaijan intends to produce 51.5 million tones of oil and 28.0 Bcm of gas in 2011 in the region versus 50.83 million tones and 26.2 Bcm, respectively, in 2010.
Last year, the Shah Deniz field - with estimated reserves of around 1.2 trillion cubic meters - produced about 6.9 Bcm of gas, up from 6.2 Bcm in 2009. In Azerbijan, BP produced 40.6 million tones of oil in 2010 versus its prior-year level of 40.3 million tones.