SOCAR and Bahar Energy Ltd. negotiate expansion of work in offshore project
Azerbaijan, Baku, 8 August / corr. Trend E. Ismayilov /
SOCAR (State Oil Company of Azerbaijan) may begin three-dimensional geophysical exploration for Bahar Energy Limited on the area between the Bahar-2 perspective structure and Gum Deniz field in the Azerbaijani sector of the Caspian Sea in the autumn of this year, a source of oil and gas market said.
Previously, it was envisaged that the company will hold only two-dimensional exploration in the area, but then it was decided to hold 3D seismic.
The source said that at present negotiations are continuing between the sides on the expansion of the existing contract.
"Upon reaching an agreement, most likely the activities will not be limited to any time frame, since they are carried out in sea, and the period of their implementation depends on the weather conditions that does not always allow to fit into a schedule," said the source.
According to source, now SOCAR conducts two-dimensional exploration on the contracted area, which is carried out with interruptions because of the weather conditions.
The exploration started in May. The operations envisage conducting the geophysical research on the area between the Bahar-2 prospective structure and the Gum Deniz Field. An agreement was reached to render services by SOCAR to Bahar Energy.
Previously, SOCAR signed a PSA contract with Bahar Energy Limited for the exploration, rehabilitation, development and production on the block, which also includes offshore fields of Bahar and Gum Deniz.
Under the second part of the contract, which involves the exploration of the Bahar-2 structure, there are plans to drill one exploration well in three years. If necessary, another one will be drilled during the fourth year. According to initial estimates, Bahar Energy Limited will invest $1 billion to conduct work under the contract.