Azerbaijan, Baku, Jan. 15/ Trend , S. Aliyev, V. Sharifov/
Two PSA contracts on the exploration and development of prospective Yalama and Inam fields can be closed in 2009 due to the exploration work which uncovered lack of commercially interesting reserves.
"The drilling in Inam field did not uncover commercially interesting hydrocarbon reserves. Shareholders have some formal obligations which they are expected to fulfill until the contract is closed. It can take place this year," a source in Azerbaijan's oil industry said.
Inam shareholders are SOCAR (50%), BP (25%), the Korean National Oil Corporation (20%) and RD/Shell (5%). The drilling of a second exploration well in the Inam field by BY in 2008 did not prove commercially.
BP said the date obtained while drilling a second exploration well in the field located in southern coast of Azerbaijani section of the Caspian Sea is being analyzed at the moment.
"No talks are held to cancel the contract," the company said.
BP eliminated second exploration well in Inam. The company drilled the well up to 5,350 meters depth, but it did not prove commercially.
According to obligations arising from PSA contract, two explorations well were to be drilled in the field. In 2001, first INX-1 well with target depth of 5, 025 meters was drilled. But the well was closed after failure. So, the company has fulfilled all obligations.
The well was drilled in a contract area of 225 square kilometers, 140 kilometers south of Baku. The depth of water varies from 45 meters in north to 200 meters in south. The minimal depth of the so-called Inam bankasi is four meters.
A source said PSA contract on exploration and development of Yalama prospective field is also expected to be closed this year. A second exploration well did not prove commercially. The drilling in this field located in north of the Azerbaijani section of the Caspian Sea ended in 2008.
The contract on development of Yalama (block D-222) was signed on July 3, 1997. D-222 block is part of Yalama which is located in equal parts of the Azerbaijani and Russian sectors of the Caspian Sea, 30 kilometers offshore at a depth of from 80 to 700 meters. A set of agreements on development of D-222, envisaging an increase of LUKOIL's share in the project to 80 percent and expansion of the contracted area to 3,000 square kilometers, was signed in 2003. In 2006, the contract area was reduced to 1,300 square kilometers.
LUKOIL Overseas sold its 15 percent in the project to Gaz de France in 2008.
The shareholding in the project is as follows: LUKOIL - 65 percent, Socar - 20 percent and Gaz de France - 15 percent.
Seismic investigation was completed in 2004 and drilling of exploratory well began in 2004. The first exploratory well was drilled in 2005. The drilling did not reveal hydrocarbon reserves.
Drilling of the second exploratory well began in Oct. 2008 which also did not prove commercially. The drilling was carried out by Overseas Operating Company Ltd. through the Heydar Aliyev drilling rig owned by the Dutch Maersk Drilling. The second exploration well was 2650 meters deep It as be drilled at a distance of 22 kilometers from the first exploration well at the depth of 690m.
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