Salyan Oil expects significant rise in 2019 oil output onshore Azerbaijan

Oil&Gas Materials 14 November 2018 15:40 (UTC +04:00)

Baku, Azerbaijan, Nov.14

By Leman Zeynalova – Trend:

Oil output is expected to rise by 30 percent in Azerbaijan’s Kursangi and Garabagli fields in 2019, a source in the country’s oil and gas market told Trend.

The source noted that this will be possible with the use of new Chinese technology at those fields.

“This technology is about injecting hot air into the reservoirs, which will allow to raise the oil recovery ratio and resume production at exhausted and old wells. It is expected that as a result, the oil output will go up by 30 percent by the second half of 2019,” said the source.

The source noted that at the present, this is a pilot project and the possibility of concluding a relevant contract further will depend on the results.

“If we have positive results, we will sign a relevant agreement. Everything will be clear by late 2019,” added the source.

Salyan Oil produced 162,000 tons of oil from Kursangi and Garabagli fields in 2017.

The fields are located in Azerbaijan’s Salyan district, around 150 kilometers from Baku. Some experts believe that the remaining reserves on the contract area exceed 150 million tons.

The contract for development of Kursangi and Garabagli fields was signed in 1998 for a period of 25 years. The shareholders of Salyan Oil are Azerbaijan’s state oil company SOCAR and China National Oil & Gas Exploration and Development.


Follow the author on Twitter: @Lyaman_Zeyn