A high-output gas-condensate well of Umid field, the well No 14, became operational after drilling started in March, 2015 to develop the field’s resources and prove capacity of its north-western part. It has 6352-m depth reaching VII horizon of productive layer.
Following the perforating work to a depth of 6317-6282 meters it was put in commission with the daily output of 600 000 m3 gas and 100 tonnes of condensate. It is planned to increase output phase by phase in near future and put it into optimal operation. The gas well is expected to produce one million cubic meters of gas and 150 tonnes of condensate a day. It affords ground for installation of new platforms to develop north-western part of the field.
Umid’s two wells produce (No 10 and 12) 750 000 m3 gas and 230 tonnes of condensate a day.
A conference dedicated to the 85th anniversary of the outstanding Azerbaijani oilman and geologist, Hero of Socialist Labor, Doctor of Geological and Mineralogical Sciences, corresponding member of the Russian Academy of Sciences and prominent public figure Farman Salmanov was held at Baku Higher Oil School (BHOS).
SOCAR’s representatives including Vice-President for Geology and Geophysics Bahram Huseynov; Counsellor to First Vice-President Alakbar Abasov; Director Deputy of Petroleum Research and Design Institute for oil and gas field development, Doctor of Geological and Mineralogical Sciences Ahmad Salmanov; Head of Science & Technology department Nazim Veliyev; and Head of SOCAR office in Great Britain Rufat Efendiyev participated in the event.
Opening the conference, the Higher School Rector Elmar Gasimov welcomed the guests and emphasised that the conference’s main objective was to help the BHOS students to learn more about the life and activity of the prominent scientist and explorer, and to honour the memory of Farman Salmanov.
SOCAR’s Vice-President for Geology and Geophysics Bahram Huseynov emphasised that Farman Salmanov devoted his life to exploration of new oil and gas fields. Salmanov became famous for discovering great oil fields in Western Siberia, and his name made it into history of the world oil industry. It was stated that under Farman Salmanov’s leadership, more than 100 major oil fields rich with hydrocarbon reserves were discovered and developed in West Siberia. Due to these fields development, the former Soviet Union became one of the largest oil exporters in the world.
Director Deputy of Petroleum Research and Design Institute, Doctor of Geological and Mineralogical Sciences Ahmad Salmanov expressed his sincere gratitude to the conference organizers. He also emphasized that management of the Higher School made all necessary efforts so that young generation would know and remember his uncle Farman Salmanov.
BHOS fourth-year Petroleum Engineering students Elvin Hasanli and Rashad Nazaraliyev spoke on the topic Farman Salmanov in the eyes of Youth. At the end of the conference, a documentary film about Farman Salmanov was shown.
On December 27, a fire blazed up on 1000-mm major gas pipeline between Gas Processing Plant and Sangachal units in Garadagh region of Baku. The gas was changed to alternative pipeline while firefighters were localizing the fire. Necessary measures were taken for extinguishing the fire and eliminating gas supply problems.
As a result of joint measures by SOCAR, Ministry of Emergency and “Azerenerji”, the fire was extinguished. Repair work has already started on the pipeline. The Absheron region’s gas supply was restored via alternative pipeline. No casualties were reported.
23 December 2016
SOCAR and BP-operated AIOC sign principles of agreement on future development of the ACG oil field in Azerbaijan to 2050
• Agreement will lead to further significant investment
• Current production from ACG is circa 620,000 barrels of oil equivalent per day
• Will create significant jobs in the years ahead
• BP will lead the partnership
SOCAR (the State Oil Company of the Republic of Azerbaijan) and AIOC (the Azerbaijan International Operating Company) today signed a letter of intent (LoI) for the future development of the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.
The agreement will cover the development of the field until 2050 and will add significant resource development potential to the middle of the century. Today ACG produces circa 620,000 barrels of oil equivalent.
The shareholders in AIOC are BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.
The LoI was signed in Baku today by Rovnag Abdullayev, President of SOCAR, on behalf of the Republic of Azerbaijan, and by Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey, on behalf of the AIOC partnership.
The LoI agrees the key commercial terms for the future development of the ACG field and enables the parties to conclude negotiations and finalise fully-termed agreements in the next few months.
Rovnag Abdullayev commented: “We have been in negotiations with ACG’s foreign partners for some time. We will complete fully-termed agreements in the near future. ACG is known as the “Contract of the Century”. It is very important to Azerbaijan - it is the symbol of our oil industry. It has opened up a whole new era for the country’s development. The Letter of Intent we signed today with ACG’s foreign partners signifies that we can now look ahead to many more years of ACG’s success.”
Bob Dudley, BP CEO, said: “This is an important day for Azerbaijan, SOCAR and the AIOC partnership. It opens up an exciting opportunity to the middle of the century for us to continue this extraordinary partnership. In 1994 we set out to develop ACG in the new phase of the country’s energy journey. BP is very proud to be a part of this long-term partnership and looks forward to continuing it for many decades to come.”
Gordon Birrell added: “As operator of ACG we are pleased to have the opportunity to continue to lead this world-class field development safely and efficiently. Today’s signing allows us to look ahead to the next chapter in ACG’s success and indeed in Azerbaijan’s energy story. We believe together we will be able to build on this success by continuing to combine the country’s potential and experience with leading technology.
“This agreement will enable future investments and projects, and will bring many thousands of jobs in the years ahead.”
Notes to Editors
ACG is a super-giant field located about 100 km east of Baku. It is the biggest producing oil field in the Caspian Sea and covers an area of more than 432 square kilometres. It lies in water depths of between 120 and 170 metres. The depth of the reservoir is 2,000-3,500 metres.
The existing ACG PSA was signed in September 1994 for 30 years. Oil production from the field began in November 1997. To date the field has produced more than 3 billion barrels of oil with around $33 billion of investment.
There are six producing platforms on ACG, linked with a world-class onshore terminal in Sangachal near Baku. From the terminal ACG oil is exported to world markets primarily by the Baku-Tbilisi-Ceyhan oil export pipeline and the Western Route Export Pipeline to Supsa.
BP is the operator acting on behalf of AIOC and the Contractor Parties to the ACG Production Sharing Agreement.
For further information please contact:
Nizameddin Guliyev in SOCAR’s press office, tel.: +994 12 521 0129
Tamam Bayatly in BP’s Baku office, tel.: +994 12 599 4557
Scott Dean in BP’s London Press Office, tel.: +44 (0)20 7496 4076.
On December 20, technology licence agreements were signed between SOCAR and Technip, Univation, Axens, and SinopecTech which have important technologies in petrochemical industry.
The agreements envisage advanced processing of natural gas and production of high-quality polymer products using modern technology as a part of SOCAR GPC project.
Under the agreement, SOCAR acquires a licence to use technology within the framework of the project, while the companies granting that license to SOCAR provide engineering and design solutions for gas processing and gas chemical plants to be built in Garadagh, 15 km south of Baku.
The event started with a minute of silence for oil workers who went missing on December 15, during the accident at the platform of N. Narimanov OGPD, as well as for Russian Ambassador Andrei Karlov who shot dead yesterday in Ankara as a result of terrorist attack since the event was attended by ambassadors of four countries.
After a short video about SOCAR GPC project, SOCAR President Rovnag Abdullayev welcomed the participants, spoke about achievements of new energy strategy conducted by Azerbaijan, the success of this strategy in the context of regional and international projects, including close relations of SOCAR with those foreign companies during the implementation of the projects. It was emphasised that Azerbaijan is an initiator and main participant in a number of projects crucial in energy security of the world.
Afterwards, participants of the project - Sinopec Deputy General Manager for Technical Issues Zhu Yinquan, President of Univation Technologies Steve Stanley, Sales Director at Axens SA Fabien Lundy, President of Technip EMIA Marco Villa, Executive Vice President of China Huanqiu Contracting & Engineering Corporation (HQC) Zhang Laiyonq, Vice President and General Manager for Engineering of Fluor Marc van Heyningen spoke at the event.
It was stated that the project, being of paramount significance for Azerbaijan, will be financed within the China's Silk Road Economic Belt project. SOCAR GPC project envisages export of natural gas and gas condensate produced from the processing of raw materials, C2+ fractions polymerisation, polyethylene and polypropylene products to Turkey, Western Europe, and China. Polyethylene exports are projected to start in 2022.
The new project includes construction of gas processing and gas-chemical plant with the annual capacity of 10 billion cubic metres, installation of gas-fired pyrolysis unit with the capacity of 610 thousand tons, polyethylene unit with the capacity of 600 thousand tons, including Butene-1 and Hexen-1 units which will operate within the gas-chemical plant, as well as establishment of a new thermal power plant to serve the plant and its facilities. Engineering, design, and construction of SOCAR GPC project will be implemented by the HQC.
The contracts were signed by SOCAR President Rovnag Abdullayev, Sinopec Deputy General Manager for Technical Issues Zhu Yinquan, President of Univation Technologies Steve Stanley, Sales Director at Axens SA Fabien Lundy, and President of Technip EMIA Marco Villa.
The event was also attended by the U.S. Ambassador to Azerbaijan Robert F. Cekuta, French Ambassador Aurelia Bouchez, Italian Ambassador Giampaolo Cutillo, and Chinese Ambassador Wei Jinghua.
In the framework of cooperation with Baku Higher Oil School (BHOS), ABB company has opened a learning centre for training future engineers at BHOS.
By providing cutting edge control, automation and instrumentation technologies that are used in modern energy infrastructure projects, the centre enables students to learn in a safe, controlled environment that replicates modern plant control sites.
Speaking about advantages, which the new centre brings to the students, BHOS Rector Elmar Gasimov says, “By adding industrial equipment and know-how to their studies, they will be able to transfer from academia to industry much faster.”
“By giving tomorrow’s engineers hands-on exposure to industrial technology, new and old, this facility brings the real world into the classroom,” observes Rustam Gasimov, ABB’s country managing director in Azerbaijan.
“ABB has spent many years establishing education and training centres in strategic locations globally,” comments Martin Grady, ABB Regional Manager. “We are pleased to be taking now our next step in collaboration in the region to support BHOS, its students and industry.”
The body of one oilfield worker, missing during the accident on the N. Narimanov Oil and Gas Production Department’s platform on December 15, 2016, was found and recovered from the sea. He was Gafarov Ilham Alihuseyn, operator of the department’s Oil Collecting Point No. 3, 58-year old, resident of Alat district, Baku. Rescuers are searching for nine other missing people.
On December 15, at about 05:00 a.m., high wind with 41 m/s speed in the Caspian Sea shattered a 150-meter part of a pier located at the right and left parts of the Oil Collecting Point No. 3 of N. Narimanov Oil and Gas Production Department (OGPD) of Azneft Production Unit (PU).
The pier’s part also destroyed adjacent area and residential box. According to preliminary report, 5 employees on duty at the oil collecting point and 5 personnel at the residential box (total of 10) are missing:
1. Zulfugarov Guloglan - equipment mechanic
2. Zulfugarov Azay - operator
3. Gurbanov Vidadi - operator
4. Hasanov Elchin - mechanic
5. Hajialiyev Hasanagha - operator
6. Gafarov Ilham - operator
7. Asadov Samir - operator
8. Bahramov Javid - operator
9. Abbasov Ramiz - equipment mechanic
10. Rustamov Gorkhmaz - operator
Vessels of the Ministry of Emergency Situations and Caspian Shipping Company have immediately been involved at the scene. Search and rescue operations continue. Management of the Ministry of Emergency Situations, SOCAR, and Azneft PU are in the site.
A special commission have been established to investigate the incident. Additional information on results of the investigation will be provided.
SOCAR (excluding Joint Ventures and Operating Companies) conducted 6706 metres of drilling works in November 2016. All of this amount fell to the share of development drilling.
In general, during January-November 2016, SOCAR (excluding Joint Ventures and Operating Companies) carried out 100363 metres drilling works including 97693 metres development drilling and 2670 metres exploration drilling.
Besides, the construction of 5 wells completed in November, including 57 wells since the start of the year.
Rector of Baku Higher Oil School (BHOS) Elmar Gasimov met with Dean of the Pre-university Faculty of the Belarusian State Academy of Communications Yuri Stepanchuk.
At the meeting, Elmar Gasimov told the guest about establishment, history, activities, development prospects and extending international cooperation of the Higher School. In his turn, Yuri Stepanchuk said that at BHOS, all necessary conditions and good opportunities were created for students and their education.
Having discussed perspectives of concluding an agreement on cooperation development between two higher educational institutions, both parties agreed that such an agreement should be to mutual benefit. The meeting participants emphasized that conclusion of the agreement will considerably promote and facilitate successful cooperation between the Baku Higher Oil School and Belarusian State Academy of Communications as well as between their teachers and students.