Azerbaijan, Baku, Dec. 22 / Trend E.Ismayilov /
Today, the State Oil Company of the Azerbaijan Republic (SOCAR) signed a PSA contract with Bahar Energy Limited for the exploration, rehabilitation and development of the Bahar and Gum Deniz offshore fields in the Azerbaijan sector of the Caspian Sea.
SOCAR head Rovnag Abdullayev and Bahar Energy Limited CEO Richard McDougall signed the agreement in Baku.
The contract consists of two parts. The first involves the rehabilitation and stabilization of production on the field and the second - the exploration of the Bahar-2 promising structure < Abdullayev said.
Under the contract, SOCAR's equity is 20 percent and Bahar Energy Limited-80 percent.
Initially it is planned to drill 50 new wells, McDougall said. Later on, the companies are expected to repair and restore 100 wells.
According to Abdullayev, the contract is concluded for a period of 25 years with option to renew for the next five years. Initially, SOCAR's share of profitable hydrocarbon will be 40 percent, in the future it will be increased to 90 percent. The investment, which will be invested in the contract, according to initial estimates, will amount to $1 billion.
About 70 percent of the production from this unit of fields will be implemented with new platforms that will be built. Also, it is planned to make maximum use of existing infrastructure. However, it is necessary to create a new infrastructure.
Under the second part of the contract, which involves the exploration of the Bahar-2 structure, it is planned to drill one exploration well in three years and in case of necessity to drill another one in the fourth year.
Under the contract, SOCAR will receive 170,000 tons of oil and 630 million cubic meters of gas within three years.
In relation to the 2008 production at the fields should be increased in 1.5 times. In 2008, the Bhar filed produced 195 million cubic meters of gas and 54,000-55,000 tons of oil.
Bahar Energy Limited was registered in the Jebel Ali Free Trade Zone in the UAE. SOCAR signed a memorandum of understanding with the firm April 16.
Gum Deniz has operated since 1955 and is located 21 kilometers southeast of Baku. So far, the field has produced about 28.9 million tons of oil and 27 billion cubic meters of gas.
Bahar has operated since 1969 and is located 40 kilometers southeast of Baku. So far, the field has produced over 16.8 million tons of oil and approximately 128.7 billion cubic meters of gas.
Do you have any feedback? Contact our journalist at [email protected]