Azerbaijan, Baku / corr Trend / Apsheron Operating Company, which is involved in the Hovsani-Zykh fields, announced a tender to construct industrial buildings and facilities in the contract a area, the company said.
Russian RussNeft signed a PSA (Production Sharing Agreement) contract with the State Oil Company of Azerbaijan (SOCAR) on the joint development of Azerbaijani onshore oil field Hovsan, Zykh Trend reports. SOCAR has a 25% share in the contract and RussNeft obtained 75% of the PSA contract. In accordance with the Contract, the Company should increase its oil production from Hovsan-Zikh by 1.5 times every two years.
The contract area of the Zykh field is 65,000 sq. m. The remaining oil reserves are 12 mln tons. There are 234 wells in the area. 168 of them have been in operation during different periods of time. Presently, oil production is carried out by means of 10 wells that make up 25 tons and 20,000 cu. m of gas per day. The volume of the extracting water reservoir is 470 cu. m per day.
Hovsan field was discovered in 1948. The current oil production from the field is 260 tons and 900,000 cu. m of gas a day. Oil is produced from 19 wells.
RussNeft OJSC is an oil company which was established in September 2002. Presently, the annual oil production of the Company exceeds 17mln tons. Its extracting reserves are over 630mln tons. The Russian company has 30 production assets, 3 oil refineries, one transport enterprise and over 300 petrol stations.