Socar’s Gas Output Drops in January

State-run oil company Socar’s gas production fell by almost 5% in January compared with January 2015, but overall output rose, according to statistics.  

Socar produced 543.1mn m³ of gas this January, compared with 570.2mn m³. In total gas production in Azerbaijan rose by 0.96% to reach 2.52bn m³.

Most of the gas came from the BP-operated Shah Deniz gas and condensate field and associated gas from Azeri-Chirag-Guneshli  (ACG) block.

However as most of the gas from ACG was re-injected into the reservoir to boost, pressure, only 1.602bn m³ of production was delivered to customers.

Socar is struggling to keep production at last year’s level. Last October the company attracted a $380mn loan from a state-controlled International bank of Azerbaijan to support drilling and work over program at its aging fields and prevent further dropping of oil and gas production.

The company has put back into production a well in Guneshli field after completing a work over program. It expects to produce 32.85mn m³ of gas and 41,000 barrels of condensate from it this year.  

Socar output was also hit by December accident in shallow–water section of Guneshli field, where most of the company’s production comes from.

As the company president has said recently, Guneshli 10 platform blaze will cut this year Socar’s output by 500-600,000 metric tons of oil equivalent.  

The government forecasts gas production at 29.345bn m³ this year, fractionally down from last year’s 29.742bn m³.

Kama Mustafayeva