Azerbaijan, Baku, June 4 / Trend /
Azerbaijan has registered the representation of the Bahar Energy Operating Company Limited - the operating company in the project on exploration, rehabilitation, development and production on the Bahar and Gum Deniz offshore fields in the Azerbaijani sector of the Caspian Sea, the Azerbaijani Taxes Ministry's "single window" service reported.
The founder of the representation is "Bahar Energy Operating Company Limited" (UAE).
The State Oil Company of the Azerbaijan Republic (SOCAR) signed a PSA contract with Bahar Energy Limited for the exploration, rehabilitation and development of the Bahar and Gum Deniz offshore fields in the Azerbaijan sector of the Caspian Sea in December 2009. Bahar Energy Limited was registered in the Jebel Ali Free Trade Zone in the UAE.
The contract consists of two parts. The first involves the rehabilitation and stabilization of production on the field and the second - the exploration of the Bahar-2 promising structure.
Initially it is planned to drill 50 new wells. Later on, the companies are expected to repair and restore 100 wells.
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.
Gum Deniz has operated since 1955 and 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 and 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.
The contract is concluded for a period of 25 years with option to renew for the next five years. Initially, SOCAR's share of profitable hydrocarbon will be 40 percent, in the future it will be increased to 90 percent. The investment, which will be invested in the contract, according to initial estimates, will amount to $1 billion.
About 70 percent of the production from this unit of fields will be implemented with new platforms that will be built.