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Wood Mackenzie: Azerbaijan to produce billions of barrels of oil in coming decades

Wood Mackenzie: Azerbaijan to produce billions of barrels of oil in coming decades Wood Mackenzie: Azerbaijan to produce billions of barrels of oil in coming decades


Baku, October 23 - Neftegaz.RU. Current investments in Azerbaijan’s Azeri Chirag Guneshli (ACG) and Shah Deniz projects, incl. potential for new phases, will open billions of barrels of oil equivalent over the next decades, Ashley Sherman, Principal Research Analyst at Wood Mackenzie, an international consulting company in the Caspian region and Europe, told Trend.

“Azerbaijan’s energy sector is strengthened by the 2 world’s largest oil and gas projects - Azeri Chirag Guneshli and Shah Deniz, contracts for which were extended until the late 2040s. Current investments, including potential for new phases, will open billions of barrels of oil equivalent during the next decades, "Sherman said.

However, according to the analyst, Azerbaijan should compete for investment in new oil and gas projects due to the changes in global industry. The energy sector of Azerbaijan still has a significant untapped potential.

"The country must also adapt to the energy transition and new expectations when oil demand reaches its maximum. This includes acceleration of the renewable energy sources development within the country for a sustainable energy sector and economy," Sherman added.

The analyst noted that, just like in other countries of the Caspian region, new oil and gas projects in Azerbaijan are often becoming more technically and commercially complex.

"The easy projects have mostly been completed. Further exploration and production of gas from reservoirs at great depth and pressure in the deepwater areas of the Caspian Sea is to be done. Shafag-Asiman exploration well developed by BP and SOCAR is a good example. This is a very complicated well that offers enormous resources for the long-term development, "Sherman said.

The analyst added that the use of the latest technologies and cost management will be the 2 main priorities for the oil and gas sector of the landlocked Caspian Sea.

Author: Rasana Gasimova