Post on 04-Feb-2018
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Azerbaijan
Update & Pipeline of Prospects
December 2015
Sue Whitbread UKTI Business Specialist
2
AZE-01 HVO Statistics Investment in capital and operational phase
projects 2015-2018
• £26 billion
• UK Accessible Export Value
• £17.8 billion
• Investment in the O&G sector to date US$59 billion
• Long term investment – 2015 to 2025 US$110
billion – upstream, mid- stream, down- stream
• HVO programme awards in 2015:
• Secured: £150 million(process control
equipment)
• UK export value 98 percent
• HVO Programme additional awards
possible by end FY 2015
• £1,000 million
• UK export value £840 million
Engineering
(FEED, EPCm)
£3.8 billion
Equipment
£7.2 billion Material
Bulks
£3.3 billion
Specialist
Services
£3.5 billion
3
Fields and Prospects . Azeri-Chirag-Guneshli
BP (op): 35.83%
Statoil: 8.6%; Chevron: 11.3%
Socar: 11.57%; Inpex: 11%; Exxon:
8%; TPAO: 6.7%; Itochu: 4.3%;
ONGC: 2.7%
Shah DenizBP (op): 28.8%
Petronas: 15.5%; Nico: 10%
Socar: 16.7%; Lukoil: 10%
TPAO: 19%;
Baku
Bahar Gum-Deniz
Bahar Energy 80%
Socar: 20%;
Bahar
Bulla DenizSocar: 100%;
Bulla Deniz
Absheron
Total: (op): 40%
Socar: 40%
GDF: 20%:
UmidSocar (op): 80%
Noble Oil : 20%
Babek
Shafag AsimanBP: (op): 50%
Socar: 50%
Mashal
Zafar
Absheron
Shallow Water
Exploration
BP Socar PSA
4
Major BP-operated and contracted facilities
Shah Deniz Stage 2
Planned production
December 2018
Shah Deniz Stage 1
First production
November 2006
Istiglal
Drilling rig
Heydar Aliyev
Drilling rig
Deepwater Gunashli
First production
April 2008
West Chirag
First production
January 2014
Chirag
First production
November 1997
Dada Gorgud
Drilling rig
West Azeri
First production
December 2005
Central Azeri
First production
February 2005
East Azeri
First production
November 2006
Sangachal terminal
First operations
October 1997
ACG EPCm
Onshore /
Offshore
Brown Field
Onshore
Produced Water
Facilities
2015/2016 2016/2018 ACG New
Platform Shah Deniz 3
5
To European markets
Shah Deniz Stage 2 and SCPX Contracts to sell gas to
Turkey (6bcma) and
Europe (10bcma)
Two new bridge-linked
platforms providing
16bcma offshore
processing
Existing
Stage 1
platform
26 subsea wells
drilled with two
semi-submersible
rigs
360km of pipelines
and 125km of subsea
flow-lines in up to 550m
water depth
New gas and condensate
processing facilities with a
compressor at Sangachal
1,900km TANAP
pipeline (not BP
operated) across Turkey
16bcma upgrade of SCP:
• new SCPX 48” loop in
Azerbaijan/Georgia
• 2 new compressor stations
in Georgia
6
Total Absheron Development
ABX-1A
ABX-2&ST
5
km
Z
Expected water
contact South
Panel
Structural spill
North PanelAbsheron
Complex Geology of layers above reservoir (mud volcanoes, creeping
shales, shallow gas, overpressurized layers, …. inducing:
Difficult seismic interpretation
Drilling constraints
Heavy wells completion
Logistic constraints linked to closed sea
Limited availability of equipment
Uneasy and costly transport/supply
Future development mainly in deep sea environment
Limited rig availability
7
Absheron Development Plan
Baku
Onshore facilities:
onshore terminal plus
7km lines (terminal
→ existing pipelines)
Sangachal
Unmanned SSSP platform with
500mmscfd production plateau
4 subsea wells connected to
two rings of 12’’ line with ILTs.
1 liquid export line: 10” CS
1 gas export line: 22” CS
1 MEG import line: 2” CS
Power cable and fibre optic line
(Power from shore)
Onshore treatment plant
4 vertical wells: 10 Kpsi Xmas trees - MPFM &
6” jumper
4 FLET-T for subsea wells connections
4 production lines: 10” CS wet insulated, ~20
km length
1 Production Control Umbilical including 2”
LDHI lines: ~20 km total length
8
ABSHERON DEVELOPMENT DESCRIPTION
DEVELOPMENT WELL SUMMARY
Well architecture 15K wellhead and 10K horizontal Xmas tree
High rate gas producer design (max 200
MMscfd)
“Bottle” completion design with cased and
perforated 5 ½” production liner
Liner tie-back for 13 3/8” x 13 5/8” casing and
10” x 10 ¾’’ casing for better cement jobs
Contingency liners : 11 7/8”, 7 5/8”
Benchmark Challenging drilling but within the envelope
(depth , deviation) of existing wells
Well average duration/Cost 220 to 250 days, 250 to 350 M$ depending on
rig rate considered
9
ABSHERON DEVELOPMENT
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CRANE MAX.
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This Document is the property of TOTAL.It shall not be stored, reproduced or disclosed to others without written authorisation from the company.
Contractor name:
Project name & Logo
Revision Memo
Syst. / S-Syst.:
Company Ref:
Contractor Ref:
N° contracts/RFS:
Doc type: Discipline:
Company name & Logo
Exploration Production
DateRev Status
Scale:Revision:
Folio:
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Approved byIssued by Checked by
_ _ _
TOTAL E&P AZERBAIJAN B.V.ABSHERON FIELD DEVELOPMENT 2013 Conceptual
SINGLE STAGE SEPARATION PLATFORM
SOUTH ELEVATION
Plot plan (dwg)AZ_ABS_04_021_000030_01.DWG
AZ ABS_04 021 00003001
00 16/04/2013 First issue DUCHEMIN_
01 17/09/2013 UPDATE DUCHEMIN_
Single Stage Separation Platform
comprises the following items:
HIPPS on 12” Inlet Riser
Flowline Pig Launcher/Receiver
Two phase HP Separator
Condensate Export Pumps
Gas Export Piping
LDHI-AA storage
Chemical Injection Package
Vent System
Closed Drains System
Open Drains System
Electric CraneThe platform main characteristics are the
following:
4 legs jacket
Topside: 24 m x 24 m
Flare boom: 123 m for block outlet
Electrical cable and optic fiber line fromonshore
Topside gross dry weight: 4 500t
10
Absheron Time Line • Development Program submission by end 2015
• Final investment Decision by Q4 2017
• Spud of development well by Q4 2018
• First Gas by End 2021/Beginning 2022
• Critical path:
• Securing a Rig for development (ongoing).
• Securing a gas marketing package allowing an economic project
(ongoing)
11
Advisors and Specialists
• Societe Generale , PricewaterhouseCoopers, OMNI, Clifford Chance, AECOM.
Purvin&Gertz, CMAI, Intertek
• Geophysical, geotechnical and hydrological studies carried out by Fugro.
Oil and Gas Processing and
Petrochemical Complex
(OGPC).
Located :60 km south from Baku covering 4500 ha. on the
border of Garadagh and Absheron regions (near
Sangachal terminal).
• Phase 1 EPCm contract awards: 2016
• Complex will be commissioned on a phased basis:
• 2020-2024
• Expenditure: US $17 billion capital expenditure
• OGPC Components
• Gas Processing Plant (GPP) – annual capacity of
approximately 12 BCMA
• Refinery (REF) – with initial crude distillation capacity
of 8,5-9 MTA
• Petrochemical Plant (PETR) – with annual capacity of
1,1 million tons
• CUOS (Central Utilities off Sites)
SOCAR-
Amec FW
Engineering LLC
• Phase 1 FEED: GPP,
PETR, REF, CUOS
• Training
KBR
PMC for FEED
Fluor
Project Management
FEED /EPCm
Technology selection
( UOP)
• Other Downstream Investments:
• Sumgait Petrochemical Plant
• Fertilizers
• Petkim Refining
12
UKTI Azerbaijan HVO Programme Delivered Through
• Unique cooperation with SOCAR , BP (with the participation of Total )
The UK Azerbaijan Partnership Programme
Launched in Baku Nov 2015:
• Niyazi Safarov Deputy Minister of Economy and Industry
• Rovnag Abdullyev ,Socar President
• Gordon Birrell BP’s Regional President for Azerbaijan,
Georgia and Turkey
• Irfan Siddiq, Her Majesty’s Ambassador in Baku
• Tahir Taghizade, Ambassador of the Republic of Azerbaijan
to the United Kingdom of Great Britain and Northern Ireland
• Establishment of a UK Azerbaijan working group to:
• Secure relationship with investors, operators, local supply chain companies
• Promote UK company capabilities (in the low cost environment)
• Support UK interests- commercial, fiscal, legislative investment environment
Working Group UK companies will include:
Main contractors, Manufactures, Oil field Services, Fabrication, Specialist
Initial Focus
Maintenance and Operational Support
Manufacturing and Fabrication
Vocational Training
17
Opportunities • First half of 2014 crude oil production: 845,000
barrels of oil per day
• 2013 proven oil reserves: 7 billion barrels 2013
• gas production: 16.2 bcm (572 bcf)
• 2014 proved gas reserves: 991 bcm (35 tcf)
Southern Gas Corridor Project
Investment amounts to US$ 26.5 billion for the
offshore facilities plus US$ 12. billion for the TANAP
pipeline system (multiple compressor and metering
systems), TAP in the order for US$ 5.3 billion.
Shah Deniz 2 gas will provide the early exports via
this route and with other large gas prospects to follow
Source: Azerbaijan Oil & Gas Year Book 2015
Amec FW
Amec Tekfen (ATA)
• MSA – Shah Deniz 2
• Offshore Brown Field
Engineering(EMS)
KBR
Detailed engineering
& procurement
support –
Shah Deniz 2
Worley Parsons
TANAP
EPCM
18
Opportunities
ACG deep gas (deep reservoir-lying under
the oil formation), - possible investment in
the order of US$ 12 billion
Aspheron Stage 1, Alov Sharg, Block 1 -
possible investment in the order of US$ 17
billion
Umid Gas / Condensate Field (with
satellites Babek, Mashal ) – major gas
project (200 bcm reserves ) -investment in
the order of US $ 16 billion
Onshore re –assessment - Conoco Philips
and SOCAR new seismic E&A programme-
more onshore oil possible.