BP and its companions simply spent $28 billion bringing a large pure fuel challenge in Azerbaijan on-line, and which will solely be the beginning.

The British oil main intends to drill six new exploration wells within the nation by 2020, in response to Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey. If his expectations are met, the corporate might discover a new fuel play that’s about the identical dimension as Shah Deniz, its challenge that produces the gasoline from a discipline within the Caspian Sea that’s as giant as Manhattan.

“Alongside Brazil, Azerbaijan stands out by way of the areas of focus for the subsequent few years,” Jones stated in a cellphone interview. “It’s a really important exploration program for us, which demonstrates the arrogance and the function that we see within the Caspian.”

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Companies, together with BP, are pouring extra money into Eurasia, a area with large, untapped fuel reservoirs which can be virtually subsequent door to fuel-hungry European consumers. In June, BP and companions together with Lukoil and Petronas, began sending fuel from the second section of Shah Deniz by a brand new hyperlink between the Caspian Sea and Turkey. From 2020, the gasoline can even movement to Greece, Bulgaria and Italy when the ultimate leg of the pipeline system is accomplished.

If BP finds extra fuel in close by exploration wells, it might use the identical pipelines to move that gasoline to Europe.

“That’s why we’ve obtained fairly an bold exploration program creating within the Caspian another very important fuel choices,” Jones stated. We might “take this supply of provide of fuel effectively into the center of the century.”

Dependence on Russia

Caspian fuel arriving in Southeast Europe will assist scale back the area’s heavy dependency on the gasoline being piped from Russia. It will supply an alternate supply of provide, together with the rising function of liquefied pure fuel from suppliers such because the U.S. and Qatar. The two phases of Shah Deniz will produce about 26 Bcmg/yr, greater than the annual consumption of Poland.

BP is concentrating on the Shafag-Asiman space, which could possibly be an analogous dimension to Shah Deniz 2, with drilling scheduled later this yr, in addition to a prospect beneath the present Shah Deniz improvement, the place it is going to drill in 2020, Jones stated. It can even have a look at oil improvement in two different areas.

Jones stated capital spending selections haven’t but been affected by a decline in oil costs late within the yr, although it renewed BP’s concentrate on discovering out whether or not there are extra huge fields in Azerbaijan.

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“Our assumption is that the oil value will keep low for a very long time, all the things we’re doing is concentrated on bringing the associated fee construction within the Caspian down,” he stated. “We have had a variety of success on that working very intently with our companions and the federal government.”

Source: www.worldoil.com

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