New scheme on Azerbaijani gas field’s development to reduce capex fivefold
Baku, Azerbaijan, June 12
By Maksim Tsurkov – Trend:
Big oil and gas fields operated by Azerbaijan’s state oil company SOCAR still have a large residual potential, a high-ranking representative of SOCAR told Trend June 12.
SOCAR representative said that 83 fields (onshore and offshore) have been opened until today in Azerbaijan and 62 of them are still being developed.
“To date, 1.009 billion tons of oil and 635 billion cubic meters of gas have been extracted from offshore fields in Azerbaijan. Meanwhile, 971.6 million tons of oil and 139 billion cubic meters of gas have been produced from the onshore fields. Many big fields still have potential and SOCAR is working to increase the oil recovery factor,” noted the SOCAR representative.
According to the representative, SOCAR uses modern technologies to stabilize production at the Oil Rocks field.
“We managed to stabilize production here at about one million tons of oil per year. Currently, 457 wells are operating, and 13 wells were drilled at this old field last year,” noted the representative.
SOCAR representative also said that the scheme for earlier start of gas production at the Absheron field, developed jointly with SOCAR, has a number of advantages over the initial development program.
“The scheme for earlier start of gas production at Absheron, using the existing infrastructure at the Oil Rocks, Bahar fields, the Azeri-Chirag-Gunashli fields, Sangachal and Garadagh during its transportation, will allow reducing the capital expenditure for the project by fivefold as compared to the initial plan. It will help to facilitate the phase-by-phase development of the field and obtain the first gas from Absheron field by three years before the deadline,” added the representative.
Earlier, SOCAR and Total signed a framework agreement on main contract and commercial principles regulating the program of the first stage of the Absheron field’s development.
At the initial stage, the field’s development includes the drilling of a well with a depth of 450 meters. The first gas from the field is planned to be extracted in 2019.
Reserves of the Absheron field are estimated at 350 billion cubic meters of gas and 45 million tons of condensate, according to SOCAR.
Participants of the Absheron project are SOCAR (40 percent), Total (40 percent) and Engie (20 percent).
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