Salyan Oil working on pilot project to boost output onshore Azerbaijan

Baku, Azerbaijan, Sept.4

By Leman Zeynalova – Trend:

Chinese technology will be used at three wells of Kursengi and Garabagli onshore oil fields in Azerbaijan, a source in the country's oil and gas market told Trend.

“In general, we plan to use this technology at 25-30 wells. But at the first stage, as a pilot project, we will introduce the Chinese technology only at three wells and gradually increase its scope of operation,” said the source.

As for the timeframe, the source noted that there are still delays in this process due to the technical problems at the old fields.

“We were expecting those problems to be resolved by October or November this year. But, apparently, we can move into late November 2019 the latest, if we manage to overcome the technical problems by that time,” noted the source.

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 was expected that as a result, the oil output would go up by 30 percent by the second half of 2019.

Earlier, it was reported that if this pilot project brings positive results, this technology will be used not only at Kursangi and Garabagli fields, but also in other projects of Azerbaijan’s state oil company SOCAR.

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.

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Follow the author on Twitter: @Lyaman_Zeyn

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