Baku, Azerbaijan, Dec.14
By Maksim Tsurkov - Trend:
Salyan Oil operating company developing Kursengi and Garabagli onshore oil fields in Azerbaijan doesn't plan to drill new wells in 2016 due to low oil prices, a source on the country's oil and gas market told Trend Dec.14.
"Drilling wells requires large amount of expenditures and it is unprofitable to start it while the oil prices are lower than $60 per barrel," said the source. "The production is maintained by repairing wells and developing them with perforation method."
Currently, repair work is underway at 77 wells, the source added.
Salyan Oil has produced around 170,000 tons of oil from two fields since early 2015. The production is carried out at 249 wells on the contract area.
The fields are located in Azerbaijan's Salyan district. Some experts believe that the remaining oil reserve on the contract area exceeds 150 million tons.
The contract on developing the Kursengi and Garabagli fields was signed in 1998 for 25 years.
The founders of Salyan Oil are the State Oil Company of Azerbaijan and China National Oil & Gas Exploration and Development Corp.
Edited by SI
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