The State Oil Company of Azerbaijan (SOCAR) and the Dubai В"Rafi OilВ" signed a contract of the PSA type on development and rehabilitation of the on-shore вЂњSurahaniвЂќ field on 16 August at the Baku Entertainment Centre. Under the contract, Rafi Oil owns 70%, SOCAR-25%, the SOCAR head Natig Aliyev stated at the signing ceremony, Trend reports.
The вЂњSurahaniвЂќoil field was discovered in 1904 by the blower with the debit of 35 tons a day. From the moment of its discovery till now totally 114,5 million tons of oil and over 10 billion cubic meters of gas were extracted from the field. The maximal production of the
field was in 1931 with 4,189 million tons of oil extracted.
According to Aliyev, the residual extractive reserves of the field are 6,822 million tons. The potentially extractive reserves are 94%. 492 wells are currently being exploited on the contract area, from which 234 - are operational.
The volume of investments in the project is estimated as 400 million USD.
Rafi Oil is committed under the contract to increase the oil production by 1,5 times during the two years. The contract is signed for 25 years and after it becomes effective, Rafi Oil is to pay bonus amounting to 1 million USD to the government of Azerbaijan.