Shah Deniz - Early Azeri Gas Export to Turkey
BP Amoco PLC
15 February 2000
The following press release was issued by BP Amoco in Azerbaijan at 1330 hours
local time (0930 hours GMT) on February 15, 2000
SHAH DENIZ SIGNALS EARLY AZERI GAS EXPORT TO TURKEY
BP Amoco, on behalf of the Shah Deniz participants, today gave outline plans
for the potential export of Azerbaijan gas to Turkey from the Shah Deniz field
in the Caspian Sea.
This follows the successful drilling of the second Shah Deniz well (SDX-2),
confirming the existence of a significant gas condensate discovery, which
underpins the first stage of a development project.
Andy Hopwood, BP Amoco's Azerbaijan Exploration Business Unit Leader, said:
'The gas memorandum signed between the governments of Azerbaijan, Turkey and
Georgia in Istanbul in November provided the framework for the export of gas
from Azerbaijan. Taken together with the excellent Shah Deniz drilling
results, it provides us with the confidence to respond positively to the
demands of the market.
'We are presently planning a staged development with a first stage producing 5
billion cubic metres (bcm) a year, subsequently rising to possibly 16 bcm a
year. There is confidence that the results of the two wells already drilled,
combined with those of a third well to be drilled later this year, should
enable us to prove first stage resources of 150 billion cubic metres (5tcf) of
gas and 20 million tonnes (150mmbbls) of liquids. The Shah Deniz partners will
be working with governments to develop the framework agreed in Istanbul with
the objective of delivering first gas to market in the winter of 2002-2003.'
Hopwood added: 'Azerbaijan - and Shah Deniz in particular - is a competitive
source of supply for Turkey given its proximity to the market, the
availability of existing infrastructure, and low development costs. The
establishment of a competitive gas export route from Azerbaijan will build a
bridgehead to the Turkish market and affirm Azerbaijan as an important
regional producer of gas, as well as oil.'
The first stage concept is based on simple offshore structures in the shallow
water area in the north and east of the field. Transportation to the Turkish
border will be through a combination of new and existing infrastructure.
Detailed engineering is expected to start shortly.
The SDX-2 appraisal well was drilled to a depth of 5,892 metres, penetrating
three main horizons. The well is now on a comprehensive testing programme and
the first of two planned flow tests is underway. SDX-2 was drilled six
kilometres to the south of SDX-1, the original discovery in July 1999.
A third well (SDX-3) will be drilled later this year to further delineate the
field, with possibly three more appraisal wells to follow, and the potential
for further upgrading of reserves. The field lies in water depths between 50
metres and 600 metres, some 70 kilometres south east of Baku.
Note to Editors:
The Shah Deniz licence partners are:
BP Amoco (operator - UK) 25.5 per cent
Statoil Azerbaijan A.S. (Norway) 25.5 per cent
SOCAR Commercial Affiliate (Azerbaijan) 10.0 per cent
Elf Petroleum Azerbaijan B.V. (France) 10.0 per cent
LukAgip N.V. (Russia / Italy) 10.0 per cent
Oil Industries Engineering and Construction (Iran) 10.0 per cent
Turkish Petroleum Overseas Company Limited (Turkey) 9.0 per cent
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