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Share Price: 460.00
Bid: 459.60
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Open: 460.30
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UPDATE 2-BP says major Azeri oil field set for month of maintenance

Thu, 30th Oct 2014 13:25

* BP says planned maintenance to end Dec. 2

* Output from ACG oil fields at 24.2 mln T in Jan-Sept

* Output from Shah Deniz 7.25 bcm gas, 1.7 mln T condensate (Adds new comments, context)

By Nailia Bagirova and Margarita Antidze

BAKU, Oct 30 (Reuters) - British oil major BP willcarry out a month of maintenance work at one of its main oilfields in Azerbaijan from Friday, BP's Azerbaijan presidentsaid, in a move that could further reduce oil production in thecountry.

Gordon Birrell told reporters the company would "slowly rundown" operations at the Central Azeri platform and the workprogramme would end by Dec. 2.

"These turnarounds (maintenance) are planned one year inadvance under our annual plan and budget, which is agreed withthe government," Birrell said. "The effect of the turnaround isbuilt into a production forecast."

Falling output at the main Azeri, Chirag and Guneshli (ACG)oil fields has worried Baku for several years.

BP and its partner, Azeri state energy firm SOCAR, tried toease those concerns last year, saying production had stabilised.Total oil output grew in 2013 for the first time since 2011 to43.15 million tonnes.

Earlier this year, however, BP said 2014 oil production atACG might be slightly lower because of planned maintenance workat the Central Azeri and West Azeri platforms.

Birrell said BP would replace some worn-out equipment toensure the safety and reliability at the facility.

Crude oil and condensate production in Azerbaijan fell to32.1 million tonnes in January-September this year from 32.8million tonnes in the same period last year.

Birrell added that, according to forecasts for late 2014,gas production at the vast Shah Deniz gas field was expected toexceed 9 bcm and 2.6 million tonnes of gas condensate. TheCaspian Sea field holds estimated reserves of 1.2 trillion cubicmetres.

Shah Deniz I has an annual production capacity of about 10billion cubic metres (bcm) of natural gas. Shah Deniz II isexpected to produce 16 bcm of gas per year from around 2019,with 10 bcm earmarked for Europe, the rest for Turkey.

Shah Deniz is operated by BP with partners TPAO of Turkey,Azeri state energy company SOCAR, Russian oil firm Lukoil and Iran's Nico (Naftiran Intertrade Co). (Writing by Margarita Antidze; Editing by Jon Boyle)

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