Azerbaijan, Baku, Feb.18 / Trend V.Sharifov /
Salyan Oil, which is engaged in oil production on the Azerbaijani Kursangi-Garabagly onshore fields, will drill two exploratory wells on its contract area in March 2010, an oil and gas market source told Trend today.
The planned well depth is 3,500 meters. They will be laid at the Kursengi Field.
"Drilling is likely to be completed in May," the source said.
The company's committee decided to drill two wells in 2010. A third well is not excluded.
"Drilling a third exploration well will depend on the results of drilling the first two wells," the source said. The company will drill only production wells.
According to the source, Salyan Oil's 2010 budget is $27 million.
Salyan Oil drilled four production wells in the contract area in 2009. Oil production from the Kursengi and Garabagli fields is roughly 640 tons per day compared to 1,050 tons several years earlier. The decline in oil production is due to the fact that the fields were developed long ago and deep wells must be drilled.
The term of the agreement to develop the onshore Kursangi-Garabagly fields 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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