Azerbaijan, Baku, Jan. 16 / Trend V.Sharifov /
Partners on the project to develop the Absheron perspective gas field on the Azerbaijani sector of the Caspian Sea plan to launch drilling the first exploration well on the contract area in mid-2010, a source close to the project said.
"Drilling is likely to begin in July or August 2009, the source added.
According to the source, drilling of the first exploration well will cost $100-$120 million. "The expenses for drilling an exploration well will hardly exceed $120 million," the source believes.
Earlier, SOCAR`s first vice president for geology, geophysics and field development Khoshbakht Yusifzadeh said the first exploratory well on the Absheron field must be drilled at a depth of more than 7,000 meters.
In the future, two additional exploratory wells may be drilled in three years. The Absheron block is located in 100 km of Baku at a depth of 500 meters.
At present, major rigs such as Istiglal, Dede Gorgud and drilling rig named after Heydar Aliyev are located in the Azerbaijani sector of the Caspian. Istiqlal and Dede Gorgud rigs are currently engaged in drilling contract with BP. Heydar Aliyev Drilling Rig, operated by the Danish Maersk Oil, is a free. Thus, the exploration well on the Absheron structure may be drilled by this rig.
The source confirmed that foreign partners on the Absheron field are engaged in discussions with Maersk Oil for the possibility of drilling the first well with the installation of the Heydar Aliyev Drilling Rig.
Absheron project Participants includes SOCAR (State Oil Company of Azerbaijan) - 40 percent, the French company Total - 40 percent and Gaz De France Suez - 20 percent.
The contract on the Absheron field was signed Feb. 27, 2009 between SOCAR and Total. Later Total sold 20 percent of its equity participation in the contract to the company Gaz De France Suez.
This is the foreign companies' second attempt to begin production of commercially attractive hydrocarbon at the Absheron prospective structure.
In 1997, SOCAR that received 50 percent of the equity, American ChevronTexaco (30 percent - the company stood by the operator of the project) and TOTAL - 20 percent signed the first PSA contract on exploration and development of the area. But after drilling of the well the reserves were found commercially unattractive, due to which the contract was closed.
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