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Production volume at Azerbaijan's Bahar, Gum Deniz fields revealed

Oil&Gas Materials 14 September 2017 11:30 (UTC +04:00)

Baku, Azerbaijan, Sept. 14

By Maksim Tsurkov – Trend:

Daily volumes of hydrocarbons’ production at an oil and gas block in Azerbaijan that includes the Bahar and Gum Deniz fields in the Azerbaijani sector of the Caspian Sea, in the second quarter of 2017 averaged 783 barrels of oil per day and 569,170 cubic meters of gas, a source in the country’s oil and gas market told Trend.

According to the source, compared to the first quarter of 2017, oil production at the field decreased by 9.5 percent, this is while gas production increased by 16.2 percent.

“In general, in the first half of the year, the average daily oil production was at the level of 824 barrels, gas - at about 530,000 cubic meters,” the source noted. “Oil production was affected by slower execution of planned maintenance followed by lower production volumes.”

In the second quarter of 2017, operating expenses of Bahar Energy Ltd, which develops an oil and gas block in Azerbaijan that includes the Bahar and Gum Deniz fields in the Azerbaijani sector of the Caspian Sea, were ten percent lower than it was planned in the country’s budget. Capital expenditures were also significantly lower than those indicated in the budget due to reduction in the volume of capital projects or their deferral.

“In the second quarter of 2017, Bahar Energy Ltd completed three types of overhaul work and eight types of maintenance work,” the source said. “During the same period, two types of overhaul work were completed and two additional repairs were started, and they are expected to be completed in the third quarter of 2017.”

The source added that by the end of this year and in 2018, Bahar Energy Ltd plans to reactivate production in the southern parts of the Gum Deniz field by repairing platforms No. 409 and No. 412, as well as by installing electric submersible pumps (ESP) in seven wells.

“The production in this part started at the end of August 2017 with the installation of ESP in the GD-414 well,” the source noted. “It is expected that the ESP will be installed in two more wells in September and October 2017. The reconstruction of the second platform will be completed by the end of the year, therefore the installation of ESP in four additional wells is expected to begin at the end of December and to last until January 2018.”

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.

An 80-percent stake in Azerbaijan’s Bahar Energy Ltd Operating Company is owned by the US Greenfields Petroleum Corporation and a 20-percent stake – by SOCAR.

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Follow the author on Twitter: @MaksimTsurkov

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