Azerbaijan’s Largest Onshore Oil Producing Company Commences Drilling of New Well

Oil&Gas Materials 4 April 2008 19:32 (UTC +04:00)

Azerbaijan, Baku, 4 April / Trend corr S. Aliyev/ Salyan Oil, the largest operating company with foreign capital producing oil in Azerbaijan's onshore fields Kursangi and Garabagli, commenced drilling of second well for this year production well, the State Oil Company of Azerbaijan (SOCAR) said on 4 April. The well is being drilled in the Kursangi field and its depth is about 3,500 metres.

In 2008, Salyan Oil intends to drill six production wells, the projected depth of which will comprise some 3,500-4,000 metres. The budget of the company for this year was set at $45.5mln, while in 2007 it was $43mln.

In 2007, the company drilled six wells, with one of them exploratory.

A 25-year production-sharing agreement on the development of Kursangi and Garabaghly oil fields was signed in December 1998. The shareholders of Salyan Oil are the State Oil Company of Azerbaijan (SOCAR), with 50% interest, as well as Chinese companies China National Oil & Gas Exploration and Development Corp. (CNODC) and FAL, each holding a 25% stake.