Azerbaijan, Baku, 22 May / corr Trend S.Aliyev / The Apsheron Operating LTD intends to drill 20 wells on Hovsani-Zykh contract area, the State Oil Company of Azerbaijan (SOCAR) said.
In October 2008 the oil production from the Hovsani-Zykh field was commenced. Over the past year, the company has produced 17,000 tons oil.
In November 2007, SOFAR received a $2mln in bonus payment from Russneft Absheron Investments Limited under the contract on development of Hovsani-Zykh onshore field, in connection with the enactment of the law.
At the beginning of November 2006, 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. 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 in Hovsan-Zikh by 1.5 times every two years.
The contract area of the Zykh field, discovered in 1935, 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 the different periods of time.
Hovsan field was discovered in 1948. Oil is produced from 19 wells.