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SOCAR prepares for signing new contract with operational company

Oil&Gas Materials 15 February 2010 16:34 (UTC +04:00)

Azerbaijan, Baku, Feb. 15 / Trend E. Ismayilov /

SOCAR (State Oil Company of Azerbaijan) and the operating company Salyan oil have agreed to prepare three-dimensional (3D) models of land deposits "Garabagly," SOCAR company head said on Monday. Salyan oil develops the contract area "Kursangi-Garabagly.

"There is the agreement between the parties. But the contract is not signed yet. There are some uncoordinated issues," the source said.

According to him, the parties are currently continuing negotiations on uncoordinated issues. In particular, Salyan oil should determine the issue concerning financing.

If this project is realized, SOCAR will prepare a 3D model of the deposit, present the results of estimates and projections for laying of new wells, the source said.

Previously, SOCAR has prepared and submitted to the customer a model of the northern part of onshore filed Kursangi. Salyan oil company was a customer. The recommendations for drilling over 30 new wells were given as a result of creating the model.

SOCAR also conducted operations to model the southern part of Kursangi field.

Projections were made for the laying of new wells. Over 80 wells have been drilled at a contractual area. Revaluation of reserves of the field showed little difference from the originally projected data, which were equal to 18 million tons.

A term of the agreement to develop onshore fields Kursangi-Garabagly is 25 years.

Kursengi is situated in the Salyan region of Azerbaijan (150 kilometers outside Baku).

According to SOCAR specialists, its oil reserves are 152 million tons on the contractual area.

The project's shareholders are: SOCAR - 50 percent, two Chinese companies - China National Oil and Gas Exploration and Development Corp. and Fal Chin - 25 percent.

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