Today, the State Oil Company of Azerbaijan (SOCAR) and Russia's Russneft has stroke a PSA (Production Sharing Agreement) contract on the joint development of Azerbaijani onshore bloc of oil fields Hovsan Sikh, Trend reports. SOCAR's share in the contract is 25%, Russneft obtained 75% of the PSA contract.
The contract was signed between Rovnag Abdullayev, SOCAR's President and Mikhail Gutzeriyev, President of Russneft.
Vagif Aliyev, Chief of SOCAR's Foreign Investments Department, said that the amount of the investments to the field will directly depend on the drilling program of the project. According to the contract, the Company should increase its oil production from Hovsan-Zikh in 1.5 time every two year, he said.
The contract area of Zikh field is 65.000 square meters. The remaining extracting oil reserves are 12 mln. tons. The field was found in 193. There are 234 wells on the are. One hundred sixty eight out of them operated in different periods of time. At present, oil production is carried out by means of 10 wells that makes up 25 tons and 20.000 cubic meters of gas per day. The volume of the extracting reservoir water is 470 cubic meters per day.
Field Hovsan was found in 1948. The current oil production from the field is 260 tons and 900.000 cubic meters of gas a day. Totally nineteen are producing oil on the field.
Russneft OJSC, an oil company, which was established in September 2002. At present, the annual oil production of the Company exceeds 17 mln. tons, its extracting reserves over 630 mln. tons. Russian company has 30 production assets, 3 oil refineries, one transport enterprise, and over 300 petrol stations.