Azernews.Az

By Abdul Kerimkhanov

In January-September 2019, oil production in Azerbaijan totaled 28.2 million tons, which is 2.7 percent lower compared to the indicators in the same period of 2018, the State Statistics Committee told local media.

In the above mentioned period, commodity oil accounted for 28.1 million tons (-2.8 percent) in the total volume of oil production, according to statistics.

In this period of time, Azerbaijan’s gas production amounted to almost 26 billion cubic meters, which is 16.8 percent higher than in January-September 2018. At the same time, commercial gas production in the reporting period amounted to 17.9 billion cubic meters (an increase of 29.3 percent).

In 2018, oil production in Azerbaijan made up 38.76 million tons, while gas production was 30.6 billion cubic meters.

Currently, an average of 110,000 tons of oil and 94 million cubic meters of gas are extracted per day in Azerbaijan from offshore and onshore fields, including the Shah Deniz, Azeri-Chirag-Gunashli (ACG) and Umid fields, which are jointly operated with foreign companies.

ACG is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters.

On September 14, 2017, a modified and redeveloped agreement was signed on joint development and shared distribution of production from the Azeri, Chirag fields and the deepwater part of the Gunashli field (ACG). The new agreement provides for the development of the field until 2050.

ACG participating interests are as follows: BP (30.37 percent), SOCAR (25 percent), Chevron (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

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