BP says major Azeri oil field set for month of maintenance

By Nailia Bagirova and Margarita Antidze

BAKU (Reuters) - British oil major BP (BP.L) will carry out a month of maintenance work at one of its main oil fields in Azerbaijan from Friday, BP's Azerbaijan president said, in a move that could further reduce oil production in the country.

Gordon Birrell told reporters the company would "slowly run down" operations at the Central Azeri platform and the work programme would end by Dec. 2.

"These turnarounds (maintenance) are planned one year in advance under our annual plan and budget, which is agreed with the government," Birrell said. "The effect of the turnaround is built into a production forecast."

Falling output at the main Azeri, Chirag and Guneshli (ACG) oil fields has worried Baku for several years.

BP and its partner, Azeri state energy firm SOCAR, tried to ease those concerns last year, saying production had stabilised. Total oil output grew in 2013 for the first time since 2011 to 43.15 million tonnes.

Earlier this year, however, BP said 2014 oil production at ACG might be slightly lower because of planned maintenance work at the Central Azeri and West Azeri platforms.

Birrell said BP would replace some worn-out equipment to ensure the safety and reliability at the facility.

Crude oil and condensate production in Azerbaijan fell to 32.1 million tonnes in January-September this year from 32.8 million tonnes in the same period last year.

Birrell added that, according to forecasts for late 2014, gas production at the vast Shah Deniz gas field was expected to exceed 9 bcm and 2.6 million tonnes of gas condensate. The Caspian Sea field holds estimated reserves of 1.2 trillion cubic metres.

Shah Deniz I has an annual production capacity of about 10 billion cubic metres (bcm) of natural gas. Shah Deniz II is expected to produce 16 bcm of gas per year from around 2019, with 10 bcm earmarked for Europe, the rest for Turkey.

Shah Deniz is operated by BP with partners TPAO of Turkey, Azeri state energy company SOCAR, Russian oil firm Lukoil (LKOH.MM) and Iran's Nico (Naftiran Intertrade Co).

(Writing by Margarita Antidze; Editing by Jon Boyle)