BP Amoco plc has confirmed a major gas-condensate discovery in the Caspian Sea off Azerbaijan with a wildcat drilled on the Shah Deniz license area.
Speculation about a major find on Shah Deniz began in May, when State Oil Co. of the Azerbaijan Republic (Socar) announced that the well had cut gas and condensate pay zones in the Shah Deniz structure (OGJ, June 7, 1999, Newsletter).
Major find
BP Amoco announced on July 12 that results from the SDX-1 well suggest a significant resource in the structure-enough to justify the early establishment of a joint working group to explore prospects for "material gas exports."
A BP Amoco official told OGJ that the most likely estimate pegged reserves at 15 tcf of gas. Azeri sources have quoted figures as high as 25 tcf, although these estimates are thought to be based on politicians` hopes rather than engineers` expectations.
The working party is expected to push for exports of Shah Deniz gas to Turkey by pipeline. Unusual for such a find, no consideration has yet been made of condensate reserves, the official said: "Gas is the driver for this project, not liquids."
Well results
The well was drilled to a total measured depth of 6,316 m and encountered gas and condensate in three horizons with a combined net pay of 220 m. The lowest horizon flowed 50 MMcfd of gas-restricted by equipment limitations-and 2,965 b/d of condensate through a 38/64-in. choke with wellhead flowing pressure of 7,126 psi.
The operator began drilling an appraisal well, SDX-2, into the Shah Deniz structure 6 km to the south of the discovery well in early May, with the Istigal semisubmersible rig operating in 348 m of water (see map, OGJ, Jan. 20, 1997, p. 32). The appraisal well is expected to be completed by mid-October.
Andy Hopwood, Azerbaijan exploration unit leader at BP Amoco, said, "Clearly SDX-1 is a good result for the Shah Deniz participants and the Republic of Azerbaijan.
"The second well should give us more information about other areas of the reservoir and, as work continues, we will be able to build up a much more complete understanding of the resource.
"But even at this early stage, this discovery has confirmed the exciting potential to create a new dimension-namely gas exports-to the development of Azerbaijan`s energy industry."
The working party to study potential gas markets would include representatives of the Azeri government, Socar, and Shah Deniz interest holders: operator BP Amoco, 25.5%; Statoil AS, 25.5%; Socar, 10%; Elf Petroleum Azerbaijan BV, 10%; LukAgip NV, 10%; Iran`s Oil Industry`s Engineering & Construction, 10%; and Turkish Petroleum Overseas Co. Ltd., 9%.
