2010 Annual Report - TPAO

28 TPAO 2010
ACG Project has been developing in phases.
The production 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 February 2005. The production
of the Phase-2 (Development of the West and
East Azeri Fields) were commenced in January
2006 (West Azeri) and in October 2006 (East
Azeri).
The production of Phase-3 (Development of
Deep Water Guneshli Field) was started up in
April 2008. In 2010, the engineering and design
studies of Chirag Oil Project (COP) which aims
to produce oil from undepleted area between
the existing platforms in Chirag and Deep Water
Guneshli were completed and Field Development
and Construction Decision was approved in
March 2010.
Shah Deniz Project
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 an areal
coverage of approximately 860 km 2 .
In 2001, the Minimum Obligatory Work Program
of the Exploration and the Extended Exploration
Periods were completed and commerciality was
declared.
The Sales and Purchasing Agreement (SPA)
between BOTAŞ and SOCAR within the scope
of Phase-1 for the natural gas discovered in the
Project which had 625 billion m 3 natural gas
and 750 million barrel condensate reserves and
Intergovernmental Agreement between Türkiye-
Georgia and Türkiye-Azerbaijan were signed.
According to the SPA, 6.6 billion m 3 of natural
gas will be delivered to Türkiye for 15 years.
Project also supplies gas to Azerbaijan, Georgia
and to BTC as fuel. Within the scope of Phase-1,
total sale is estimated to be 8.6 billion m 3 / year
during the plato period.
With the Shah Deniz Phase-1 Field Development
and Construction Decision, construction period
started in 2003 and commercial production
was started on March 7 th , 2007 and is currently
continuing.
In 2010, 6.9 billion m 3 natural gas and 14.7
million barrels of condensate were produced
and by the end of 2010, cumulative production
reached to 23.6 billion m 3 natural gas and 49.8
million barrels of condensate.
For Phase-2, it is estimated that construction
decision will be taken in 2013 and first gas
delivery will be realized in 2017.
Alov Project
Alov Exploration Project covers three different
prospective structures named Araz-Alov-Sharg
in the Middle of the Southern Caspian Sea,
having estimated reserves of 385 billion m 3 of
natural gas and 5 billion barrels of oil.
TPAO joined the Project after signing EDPSA,
by an “Agreement on Participating Interest to be
Vested” on July 29 th , 1998. For the Alov Project,
the minimum contractual commitments are
1,400 km 2 3D seismic survey and drilling of three
exploration wells for the three-year exploration
period. Seismic acquisition and interpretation
works have been completed, and drilling of first
exploration well is waiting for the determination
of legal status of Caspian Sea.
Pipeline Projects of TPAO Contributing to the
Energy Corridor
In Türkiye, 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.
Following the determination of the hydrocarbon
potential of The Black Sea, if the expectation
of creating a triangular source area is realized,
this source will flow through the Anatolian axis to
reach the market in due time with confidence.
Being aware of its responsibility in this axis, TPAO
has been endeavoring to meet the national oil
and gas demand and will continue to increase
its effectiveness and control oriented activities
throughout East-West Energy Corridor.
Baku-Tbilisi-Ceyhan Main Export Crude Oil
Pipeline (BTC) Project
The transportation of oil produced in Caspian
Region, especially from ACG Project in Azerbaijan
to the world markets, in a safe, secure, reliable
and environmentally friendly way is continuing
through the BTC Project which is the first step of
East-West Energy Corridor.
Within the scope of the Project, an approximately
1,768 km long pipeline, with a nominal capacity
of 50 million tons/year, starting from Sangachal
Terminal close to Baku-Azerbaijan passing by
Tbilisi-Georgia and reaching to the Mediterranean
Sea at Ceyhan-Türkiye, has been constructed.
The physical construction, production, installation
and all tests of required facilities, started in April
2003 in all three countries, were completed.
current projects
new ventures
TPAO 2010
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