New oil and gas contract signed in Azerbaijan
Azerbaijan, Baku, June 3 / Trend E. Ismayilov /
SOCAR and UGE-Lanser PTI company signed a contract for the rehabilitation, development and production section (PSA) on onshore block of fields Balakhani-Sabunchu-Ramani and Kurdahani. The contract covers an area of 16.14 square kilometers.
The contract was signed for 25 years, with a possible extension for another five years. Lanser got about 75 percent of equity participation in the contract and SOCAR -25 percent.
Income from profit oil will be calculated by the formula R-factor. Azerbaijan's share will initially hit 55 percent of revenue, with growth up to 92.5 percent, SOCAR head Rovnag Abdullayev said.
Abdullayev said that the company will prepare a plan of work and investment in the project within 90 days. He also noted that investment in the project can reach several hundred million dollars. It will be sufficient for reconstruction of the field and stabilization of oil production.
The fields Balakhani-Sabunchu-Ramani have been developed since 1871. So far, about 9,549 wells have been drilled and 271 million tons of oil have been produced. Remaining recoverable oil reserves estimated at 7.3 million tons. About 208.200 tons of oil was produced in 2009. Now, the block of fields is on the balance of Balakhani Oil and Gas Production Department. The operating fund has 1,124 wells. About 328 wells are not exploited.
Exploration work was carried out on the field Kurdahani from 1914 to 1947. Since the beginning of field development up to January 1, 2010, about 59 wells have been drilled and 198,000 tons of oil have been produced. Remaining recoverable reserves hit 205 tons.