azerbaijan strategic performance unit sangachal terminal presentation
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Azerbaijan Strategic Performance Unit Sangachal Terminal Presentation. BP Azerbaijan Strategic Performance Unit. July, 2009. Azerbaijan Country Context. Area 86,600 km 2 (33,774 sq miles) Population 8.5 million. - PowerPoint PPT PresentationTRANSCRIPT
Azerbaijan Strategic Performance Unit
Sangachal Terminal PresentationBP Azerbaijan Strategic Performance Unit
July, 2009
2
Azerbaijan Country Context
•Area 86,600 km2 (33,774 sq miles)
•Population 8.5 million
Oil history – Famous Azerbaijan Oil Firsts:
• First oil well in the world was drilled (not dug by hand) in 1848 in Baku in Bibi Heybat oil field
• In 1897-1907 the 1st largest oil pipeline in the world was built from Baku to Batumi - 883 km x 20 sm
• In 1900 Azerbaijan produced more than 50% of world’s oil – 11.4 million tons
• About 80% of oil production during 2nd world war in former USSR was made in Baku (peak production – 23,5 million tons in 1941)
• First offshore oil production in the world started in Azerbaijan (1924 – Bibi Heybat beach, 1947 – Oily Rocks in open sea)
3
150 year of hydrocarbon production
4
BP and Co-Venturers’ Interests in Azerbaijan Projects
Alov
SOCAR 40%
BP
15%
StatoilHydro
15%
ExxonMobil15%TPAO
10%
EnCana
5%
ACG
BP
34.1%
Chevron
10.3%Inpex10.0%
SOCAR10.0%
StatoilHydro8.6%
ExxonMobil8.0%
TPAO6.7%
Devon5.6%
Itochu3.9%
Hess2.7%
Shah Deniz
StatoilHydro
25.5%
BP
25.5%
SOCAR
10.0%
LUKOil
10.0%Total
10.0%
NICO
10.0%
TPAO
9.0%
BTC
30.1%
2.4%
25%
3.4%8.9%
2.5%
6.5%
5%
5%
2.5%
8.7%
BP
Chevron
SOCAR
StatoilHydro
TPAO
Itochu
Hess
Total
Inpex
Eni
ConocoPhillips
SCPC
StatoilHydro
25.5%
BP
25.5%
SOCAR
10.0%
LUKOil
10.0%Total
10.0%
NICO
10.0%
TPAO
9.0%
BP and Co-Ventures' Interests in Azerbaijan Projects
6
First oil Nov 1997
Current production 130 mbd
gross
Total investment $2.2bn
Chirag platformChirag platform
Sangachal EOP terminalSangachal EOP terminal
ACG Early Oil Project
7
• Recoverable volumes 5.4 bn bbl gross
• Peak production 1 mmbd gross
• Total capital cost $25 bn gross
• 2009 production forecast 701.7 mmbd
• Project start-up dates:– EOP Nov 1997
– Central Azeri Feb 2005
– West Azeri Dec 2005
– Gas injection May 2006
– East Azeri Oct 2006
– Phase 3 (DWG) Apr 2008
ACG Full Field Development
1
ACG gross production
0
200
400
600
800
1000
1200
2005 2008 2011 2014 2017 2020 2023
Chirag
Azeri
mbd Deepwater
Gunashli
23 2
8
BP Azerbaijan Vision
Offshore: Chirag
People: 3000 BP staff +Agency
Infrastructure: • 2 export pipelines• Sangachal EOP Terminal
Production:
130 mbd
Chirag, CA/CWP, WA, SD,EA
4000 BP staff + agency
• 4 export pipelines and rail• Expanded Sangachal
terminal
• Oil over 600 mbd • Gas start-up
10 operating platforms + projects 2000 BP staff
• 3 export pipelines• One of the biggest terminals in the
world
• Oil 701.7 mmbd in 2009• Gas 415 mmscf/day in 09; peak 822
mmscf/day• Condensate peak of 58 mbd
GROWTH Capital Spend 2007: $9m/day
GROWTH Capital Spend 2007: $9m/day
Central Azeri / CWP
East Azeri
Sangachal
Shah Deniz 2
Sangachal
ChiragWest Azeri
Central Azeri / CWP
East Azeri
GROWTH Capital Spend 2004:
$12m/day
GROWTH Capital Spend 2004:
$12m/day
Chirag
NREP, WREP NREP, WREP, SCP, BTC, Rail
Sangachal
Baseline: 2004 End 2007 The Future
Shah Deniz 1
DWG Chirag
West AzeriCOP
NREP, WREP, SCP, BTC, Rail
Inam Alov
Shah Deniz 1
9
• Recoverable volumes (total) - 27.1 tcf of gas (1050 mmbbl of condensate)
• Stage 1 peak production - 830 mmscfd (142 mboed)• Total capital cost - $4 bn• 2009 gas production forecast - 415 mmscfd • 2008 condensate production forecast - 35 mbd
• Project start-up dates :
− TPG 500 platform installed: April 2006− First gas: Dec 2006− First gas to Georgia: Jan 2007− First gas to Turkey: Jul 2007
Shah Deniz Stage 1 Gas Sales
0
1
2
3
4
5
6
7
8
9
2005 2010 2015 2020 2025 2030
bcma
BOTAS
Stage 1
Decline SalesBTC SPA
Georgia SPA
Azerbaijan SPA
Shah Deniz
10
Sangachal Terminal 1992Sangachal Terminal 2000Sangachal Terminal 2001Sangachal Terminal 2002Sangachal Terminal 2003Sangachal Terminal 2004
Sangachal Terminal
Sangachal Terminal 2005Sangachal Terminal 2007
11
Northern Export Route
Western Export Route
BTCSCP
SANGACHAL TERMINAL
ACG going to AzerbaijanHP-SD going to
Azerbaijan
LP going toAzerbaijan
Third party export oil
Third party
A Strategic Hub for the Caspian:
Potential (Oil)
Operational (Oil)
Potential (Gas)
Operational (Gas)
Produced Water
Alov24” Oil
from Chirag
InamSD Phase IIDeepwater
Gunashli30” Oil
from Azeri
30” Oil from Azeri
30” Oil from Azeri
4”
26”12
SD Phase I
COP
12
BAKU
TBILISI
CEYHAN
Sangachal
Erzurum
TURKEY
GEORGIA
AZERBAIJAN
BLACK SEA
CASPIAN SEA
MEDITERRANEAN SEA
BAKU
TBILISI
CEYHAN
Sangachal
Erzurum
TURKEY
GEORGIA
AZERBAIJAN
BLACKSEA
CASPIANSEA
MEDITERRANEANSEA
South Caucasus PipelineFirst gas Dec ‘06Ultimate Capacity 20 bcmaLength 690 kmDiameter 42” Gross Capex $1.1bn
Baku-Tbilisi-Ceyhan PipelineFull capacity (2008) 1 mmbdLength 1768 kmDiameter 46/42/34” Gross Capex $3.9 bnFirst tanker departed 4th June 2006Current BTC export capacity 750 mbd
3000m
2000m
1000m
Sea Level
1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0
BTC Pipeline Route Profile (Distance in km)
AzerbaijanGeorgiaTurkey
Azerbaijan, Georgia, Turkey Pipelines Project
13
Istanbul - the big issue behind BTC
• Oil volumes shipped through Bosporus increasing every year (pipeline oil would have increased volume by 50%)
• Oil tanker traffic increasing as a percentage of total transits through Bosporus
Black Sea
Mediterranean Sea
Istanbul
Istanbul
14
Platforms
Central Azeri
Central Azeri
East AzeriEast Azeri
West AzeriWest Azeri
Shah Deniz TPG 500
Shah Deniz TPG 500
15
RoW ReinstatementRoW Reinstatement
The official inauguration of BTCThe official inauguration of BTC
Georgia Pump StationGeorgia Pump Station
BTC
Ceyhan Marine TerminalCeyhan Marine Terminal
RoW ReinstatementRoW Reinstatement
The official inauguration of BTC
The official inauguration of BTC
Georgia Pump StationGeorgia Pump Station
16
4th June 2006: First Tanker Loading at Ceyhan Terminal was successfully completed. “British Hawthorn” sailed away with 592,000
barrrels on board.
First Tanker Loading
THANK YOU
THANK YOU