SOCAR thinking of exploiting ACG deep gas - Azerbaijan
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It is being reported locally that state company Socar has been in talks with both Shell and Total with regard to the development of deep gas in the Azeri-Chirag-Gunashli (ACG) fields. According to the production sharing agreement over ACG, the BP-led AIOC international consortium has no right to develop these deeper gas deposits, which require a new contract. Under the ACG agreement, the consortium has the right to conduct exploitation down to the Fasila Suite. Two gas-rich layers, Girmekiustu and Girmekialti, underlie Fasila and are estimated to hold over 8 Tcf in reserves. Exploitation of these reserves is expected to enable Azerbaijan to fully supply its domestic demand and boost gas exports. For the moment there is little incentive to speed the process and when contracts are signed to monetize these gas reserves, they are expected to include conditions more advantageous to the state.
This article is extracted from International Oil Letter, Vol 24 issue 18, published 5 May 2008.
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