Azerbaijan, Baku, Dec. 24 / Trend E.Ismayilov /
Bahar Energy Limited Company will be able to sell gas to be extracted from deposits on the domestic market of Azerbaijan, as well as export it as part of a PSA contract for exploration, rehabilitation, development and production of the block, which consists of offshore deposits "Bahar" and "Gum Deniz", a source on Azerbaijan's oil and gas market. The contract was signed between SOCAR and Bahar Energy Limited in Baku on December 21.
As a source said, the sale of gas from Bahar Energy on the domestic market will not increase the price for gas inside the country.
"The contractor will have the opportunity to sell and export within the country. The details will be specified in subsequent documents," the source said.
The sides are preparing an investment program at the moment. According to the preliminary calculations, Bahar Energy Limited's investment volume for 25 years will amount to $1 billion.
Initially, SOCAR's share of profitable hydrocarbon will be 40 percent. In future, it will increase 90 percent. The investment, to be invested in the contract, according to the initial estimates, will amount to $1 billion.
A residual gas reserve on a block at the field hits 25 billion cubic meters. It is necessary to aply new technologies and repairing wells to produce these resources. So far, Gum Deniz and Bahar have produced 128 billion cubic meters of gas.
Gum Deniz has operated since 1955. It 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. It 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.
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, SOCAR Head Rovnag Abdullayev said earlier.
Since Azerbaijan has been exploiting these fields for a long time, given the depreciation of the infrastructure, a new infrastructure will be created here. But within the capabilities we will try to use the old infrastructure," Abdullayev said.