Azerbaijan, Baku, 4 February / Trend / The Chinese CNPC Hong Kong Ltd produced 547,000 barrels of oil in 2007 against the forecasted 530,000 barrels in 2006 within the framework of the project to develop Azerbaijani Kursangi-Garabagli onshore field in the first quarter of 2007.
The company's net profit made up $5.5mln in 2007 against $5.27mln in the first quarter of 2006. The increase comprised $230,000 or 4.52% as compared to previous years. The cost of operations on Kursangi-Garabagli made up $7mln in the first quarter of 2007 against $9.5mln in 2006.
CNPC is also a shareholder of the operation company to develop the South-East Gobustan area.
In 2008, the company intends to drill six exploitation wells. The depth of the wells totals 3,500 m and 4,000 m. The company budget is $45.5mln.
The agreement term for development of Kursangi-Garabagli field is 25 years. The company shareholders are SOCAR (50%), China National Oil & Gas Exploration and Development Corp. (CNODC) and CNPC ( Hong Kong) Ltd. (CNPCHK) - each holding 25%.
The contract to develop the onshore South-East Gobustan field was signed on 2 June 1998. The project participants are SOCAR with 20% and Vitol, CNPC and CNODC with 80%.