Phase 3 to push Caspian output over 1 million bpd

Ray Tyson

Unocal and its partners have signed a resolution sanctioning Phase 3 development of the giant Azeri-Chirag-Gunashli field in the Azerbaijan sector of deepwater Caspian Sea.

“The sanctioning of the Phase 3 development is an important step toward making this resource a 1 million barrel per day producing field,” Don Hansen, Unocal’s vice president for International energy operations, said Sept. 20.

Phase 3 offshore facilities would consist of a 48-slot drilling, utilities and quarters platform. The start of oil production from Phase 3 is currently planned for mid-2008, Unocal said. All associated gas, except for fuel requirements, would be delivered to SOCAR, Azerbaijan’s state oil company. The field’s gross recoverable oil is estimated at around 5.4 billion barrels.

Unocal Khazar, a Unocal subsidiary, has a 10.3 percent interest in the Azeri-Chirag-Gunashli field. Other owners include SOCAR with a 10 percent working interest, operator BP with a 34.1 percent stake, INPEX with 10 percent, Statoil with 8.6 percent, ExxonMobil with 8 percent, TPAO with 6.8 percent, Devon Energy with 5.6 percent, Itochu with 3.9 percent and Amerada Hess with 2.7 percent.

The field is currently producing about 148,000 barrels of oil per day, with additional phases planned. Total production from all fields is expected to peak at more than 1.1 million barrels of oil per day in 2009 after Phase 3 comes on line.