Developer of Azerbaijani oil & gas block completes 1Q with loss
Baku, Azerbaijan, June 6
By Maksim Tsurkov – Trend:
Bahar Energy Ltd., which develops an oil and gas block that includes Bahar and Gum Deniz fields in the Azerbaijani sector of the Caspian Sea, had a loss of almost $1.4 million in 1Q17, a source in Azerbaijan’s oil and gas market told Trend June 6.
According to the source, in 1Q17, the company’s sales averaged 709 barrels of oil and about 490,000 cubic meters of gas per day, which accounts for 83.6 percent of the total deliveries to Azerbaijan’s state oil company SOCAR.
The average volume of oil sale decreased by 20 percent, while gas sale increased by 27 percent in the period, as compared to the same period of 2016. The total volume includes 10 percent of compensatory oil supplied to SOCAR free of charge. In 1Q17, Bahar Energy Ltd. sold oil at an average price of $48.2 per barrel, and gas at a constant fixed contract price of $140 per 1,000 cubic meters, noted the source.
The company completed the period with a loss of $1.37 million, while its net loss totaled $3.6 million in the same period of 2016, added the source.
Azerbaijan’s state oil company SOCAR signed a PSA in 2009 with Bahar Energy Ltd. for exploration, rehabilitation, development and extraction at the Bahar-Gum Deniz block.
The US Greenfields Petroleum Corporation is the 100-percent owner of the Bahar Energy Ltd.
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