5 - TPAO

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ACG Project has been developed in phases.
The production has started from Chirag Field
(the early oil project) in November 1997. The
Phase-1 (Development of the Central Azeri
Field) was put into production in 2005. The
productions of the Phase-2 (Development
of the West and East Azeri Fields) were
commenced in 2006 and the production
of Phase-3 (Development of Deep Water
Guneshli Field) was started up in 2008.
Chirag Oil Project (COP) which aims to
produce oil from undepleted area between the
existing platforms in Chirag and Deep Water
Guneshli is on the execution phase and it is
expected to be online at the end of 2013.
Shah Deniz Project
The project has been signed in 1997 and after
the completion of the Minimum Obligatory
Work Program of the Exploration and the
Extended Exploration Periods in 2001,
commerciality of natural gas and condensate
has been declared.
The Shah Deniz Structure is located in the
offshore South Caspian Sea, 70 km southeast
of Baku and 70 km southwest of the Azeri-
Chirag-Guneshli Field. The concession has
area coverage of approximately 860 km² with
water depth varying between 150 and 600 m.
According to the Sales and Purchasing
Agreements (SPA), within the scope of
Phase-1 in the project which had 625
billion m³ natural gas and 750 million barrel
condensate reserves, the produced gas has
been exported to Turkey, Azerbaijan and
Georgia.
With the Shah Deniz Phase-1 Field
Development and Construction Decision,
the production has started on December
2006 while the commercial production
started in April 2007. The expected annual
plateau production in Phase-1 is specified as
8.6 billion m³ and 6.6 m³ of this amount is
segregated to Turkey for 15-years period.
By the end of 2011, the cumulative produced
natural gas is 30.7 billion m³ and produced
condensate is 63.8 million barrels. For 2011,
the amount of them was 6.7 billion m³ and 14
million barrels, respectively.
The equity of TPAO through the project is 2.2
billion m³ of natural gas and 4.7 million barrels
of condensate. In 2011, these numbers
are 467 million m³ for natural gas and 967
thousand barrels for condensate.
For Phase-2, it is estimated that construction
decision will be taken in 2013 and first gas
delivery will be realized in late 2017.
Alov Project
Turkish Petroleum Overseas Company
(TPOC), a wholly owned subsidiary of TPAO
joined the Project after signing EDPSA, by
an “Agreement on Participating Interest to be
Vested” on July 29 th , 1998. As of December
21 st , 2011 TPOC was assigned as the
operator of the Alov Exploration Project.
Alov Exploration Project covers three different
prospective structures named Araz-Alov
Sharg in the Middle of the Southern Caspian
Sea. The license area is located 500 km
south-east of Baku in water depths varying
from 400 m to 1000 m.
For the Alov Project, the minimum contractual
commitments are 1,400 km² 3D seismic
surveys and drilling of three exploration wells
for the three-year exploration period. The
legal status determination of Caspian Sea is
waiting for the first exploration well drilling.
Pipeline Projects of TPAO
Contributing to the Energy Corridor
In Turkey, which resides at the intersection
of Middle East and Caspian Regions having
the major portion of the world oil reserves,
the basis of the energy corridor to carry the
energy resources to the world market was
initiated by the constructions of BTC and SCP
Pipeline Projects.