Azerbaijan’s Large Operating Company to Drill a New Well
Azerbaijan, Baku, 29 July / Trend corr. S.Aliyev/ Salyan Oil, a large operating company of Azerbaijan with foreign capital, engaged in production of oil from Azerbaijan's Kursangi-Garabagli onshore fields, plans to launch this year drilling of the 5th well in contracted area, company reported.
According to company, the 6th well will obviously not be drilled.
In 2008, the company plans to drill six operation wells with the depth of some 3,500-4,000 metres. Company's budget for this year totals $45.5mln. In 2007, Salyan Oil drilled six wells (drilling of one commenced in 2006), with one of them exploration. Salyan Oil's budget for 2007 was $43mln.
The validity period of the production-sharing agreement on the development of Kursangi-Garabagli oil fields is 25 years. Shareholders of the project are State Oil Company of Azerbaijan (SOCAR), with 50% interest, as well as two Chinese companies, China National Oil (CNODC) and CNPC (Hong Kong) Ltd. (CNPCHK), each holding a 25% stake.
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