Baku, Azerbaijan, April 27
By Leman Zeynalova – Trend:
UK-based Nobel Upstream and Azerbaijan's state oil company SOCAR aim this year to bring in a partner and finalize plans for a new offshore gas project in the Caspian Sea known as Umid-Babek, Platts reported citing the chief executive of Nobel Upstream Larry Bates.
Bates said discussions are already underway with international oil companies and he expects an agreement this year.
“The depth of the wells needed to develop Umid-Babek means they are likely to be relatively expensive, and a partner with experience of high-pressure fields will be needed, Bates said. “The goal is to start producing around 2022 from a new platform at Umid, with output of around 3-4 billion cubic meters per year.”
Another platform would be installed at the deeper Babek formation, which has had no wells drilled in it, with production there envisaged from 2023, he said.
Following a pause after the oil price collapse, "we were really pleased that in 2016 the [Azerbaijani] government prioritized getting the risk service agreement (RSA) moving," Bates said. “Nobel has joined in a study agreement with SOCAR and US upstream company ConocoPhillips that has been seeking opportunities onshore in Azerbaijan, where oil production dates back 150 years. But no viable projects have yet emerged.”
Nobel Upstream is a privately held independent exploration and production company engaged in oil and natural gas projects. The company has its headquarters in London with technical and commercial teams based in Baku, Azerbaijan and Houston, the US. Nobel Upstream has active projects in Azerbaijan and North America, and continues to seek investment opportunities in these and other countries.
The company holds 20-percent share in SOCAR Umid Oil and Gas Limited, which has signed a risk service agreement for exploration and development of the offshore block that includes the Umid gas field and Babek prospective structure in the Azerbaijani sector of the Caspian Sea.
SOCAR announced the discovery of Umid field in 2010.
The risk service contract (a contract with a minimum guarantee of compensation) for exploration and development of an offshore block including the Umid gas field and the promising Babek structure in the Caspian Sea was signed between SOCAR and SOCAR Umid Oil and Gas Ltd on January 12, 2017.
According to SOCAR’s data and the results of drilling of the first exploration well, the volume of the field reserves reach over 200 billion cubic meters of gas and 40 million tons of condensate.
Umid field is located 75 kilometers from Baku.
The reserve of Babek structure may stand at 400 billion cubic meters of gas and 80 million tons of condensate, according to preliminary data.
---
Follow the author on Twitter: @Lyaman_Zeyn