• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 17 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 24 hours Governments that wasted massive windfalls
  • 24 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 4 hours Which type of Hegemony will China follow
  • 23 hours Here is Why People Lose Money Trading Natural Gas
  • 10 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 21 hours Let’s take a Historical walk around the Rig
  • 21 hours US Shale: Technology
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 1 day Trump capitulated
  • 1 day Trump has changed into a World Leader
  • 2 days Beijing Must Face Reality That Taiwan is Independent
Alt Text

Demand Fears Are Driving Today’s Oil Markets

The outbreak and escalation of…

Alt Text

Speculators Are Dragging Down Natural Gas

It seems that fundamentals can…

Alt Text

What Is Holding Back India’s Solar Boom?

Solar energy in India has…

Eurasianet

Eurasianet

Eurasianet is an independent news organization that covers news from and about the South Caucasus and Central Asia, providing on-the-ground reporting and critical perspectives on…

More Info

Premium Content

BP Bets Big On The Caspian Sea

UK oil and gas giant BP is planning to launch an ambitious two-year exploration and drilling program in Azerbaijan's sector of the Caspian Sea aimed at confirming new oil and gas reserves for export, a spokesperson for BP in Baku has confirmed to Eurasianet.

The company's plans for this year involve drilling four new exploration wells in three separate blocks, all of which are thought to hold substantial gas reserves, and to conduct seismic surveys of a fourth block, thought to hold either oil or gas.

Another three exploration wells are planned for 2020, added the spokesperson, Tamam Bayatli.

The spokesperson cautioned that all the exploration wells are by their nature "exploratory" and there is no guarantee that commercial volumes of oil or gas will be discovered.

However, BP and Azerbaijani officials have long predicted that some of the fields to be explored hold substantial reserves of gas, with seismic surveys of one of them, the Shafag-Asiman block, suggesting reserves of up to 500 billion cubic meters. If those projects are borne out the block would be the second-largest gas field discovered the Caspian, behind only the Shah Deniz field and its estimated 1.2 trillion billion cubic meters of gas. Related: This Is How Much Each OPEC+ Member Needs To Cut

“Alongside Brazil, Azerbaijan stands out in terms of the areas of focus for the next few years,” Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey, recently told Bloomberg. “It’s a very significant exploration program for us, which demonstrates the confidence and the role that we see in the Caspian.” BP potentially could “take this source of supply of gas well into the middle of the century,” Jones added.

Two of the planned wells will be drilled this year in the Shallow Water Absheron Peninsula block, about 30 kilometers southeast of Baku, which BP owns in an equal partnership with the Azerbaijani state oil company, SOCAR. A third well in that block is slated for exploration next year.  

A third well planned this year is in the Shafag-Asiman block in deeper waters about 125 kilometers southeast of Baku, which BP also shares with SOCAR. The fourth well slated for this year is the Gobustan block, in an inland field about 50 kilometers west of Baku, in which BP owns a 61 percent share, with SOCAR and the Geneva-based Vitol owning the rest.

In addition, BP will this year conduct seismic surveys of Block D230, a deepwater area 135 kilometers north of Baku, with a first exploration well slated for 2020. Related: Low Oil Prices Are Not The Only Problem For The Permian

Also planned by BP for 2020 is a first exploratory deep well into the existing Shah Deniz gas field. Shah Deniz has been producing gas since 2006, now exporting it to Turkey via the South Caucasus Gas pipeline. Exports onward to Europe, via the Trans-Anatolian Pipeline (TANAP), are due to start in 2020.

However, BP officials have long predicted the existence of a second "deep" gas reservoir below the existing Shah Deniz field, which the planned well is expected to confirm.

While company officials emphasize that the drilling is only exploratory, well-drilling – in particular deep-water drilling – is an expensive business, and the new program indicates some confidence that new reserves can be located. The new reserves would seem to be earmarked for export to Europe, given the excess capacity available in TANAP. That pipeline, constructed at a cost of $8.5 billion, has a total capacity of 31 billion cubic meters per year and Azerbaijan currently is producing only enough gas to fill half of it

By Eurasianet

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play