Azerbaijan, Baku, 5 May / Trend corr. S.Aliyev / Salyan Oil, the largest operating foreign capital company which produces oil in Azerbaijan's Kursangi-Garabaghly onshore field, has begun drilling their third well in 2008, the company said on 5 May. They are considering the possibility of extending its drilling program this year, according to a source involved in the project. The depth of the well is about 3,500 m.
In 2008 the company plans to drill six wells each well with a depth of about 3,500 or 4,000 m. The Company's budget for 2008 is $45.5mln.
The company has completed the 2007drilling program. Salyan Oil completed drilling five exploitation wells approximately 3,500m deep. In addition, this year the company drilled six wells (one was partially drilled at the end of last year) which included an exploratory well.
The budget for Salyan Oil for 2007 is $43mln.
The Salyan Oil budget made up $43mln in 2007. A 25-year production-sharing agreement to develop Kursangi and Garabaghly oil fields was signed in December 1998. Salyan Oil was set up a year later and is currently owned by the State Oil Company of Azerbaijan (SOCAR), with a 50% interest, as well as with Chinese companies, China National Oil (CNODC) and CNPC (Hong Kong) Ltd. (CNPCHK), both holding a 25% stake.
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