BAKU, Azerbaijan, Apr.9
By Leman Zeynalova - Trend:
It is not yet clear what could be the production potential of the Shafag-Asiman discovery, but in theory it could be used to increase sales through the Southern Gas Corridor to Turkey or Europe, Fitch Ratings told Trend.
“Domestic sales are less profitable, and Azerbaijan’s current production is sufficient to satisfy the domestic gas demand. It is impossible, however, to evaluate the project’s potential profitability at this stage, because key parameters of the discovery are not yet revealed,” said the company.
Geological exploration work at the Shafag-Asiman block is being carried out as part of the joint project of SOCAR and BP. In accordance with the Production Sharing Agreement, drilling was operated by BP at a depth of 623 meters and was carried out by SOCAR's subsidiary Caspian Drilling Company using a semi-submersible drilling rig named after Heydar Aliyev. Drilling began on January 11, 2020.
Shafag-Asiman field is located 125 km south-east of Baku. The block covers an area of 1,100 square meters. The sea depth here is 650-800 meters Shafag-Asiman was discovered in 1961. On October 7, 2010, SOCAR and BP signed an agreement "On exploration, development and production sharing of the Shafag-Asiman offshore block in the Azerbaijani sector of the Caspian Sea." The agreement is valid for 30 years. In accordance with the agreement, in 2012 BP conducted a 3D seismic survey at the Shafag-Asiman block. Based on the processing and interpretation of the received data, the partners determined the location of the first exploration well and started drilling the well in 2020.
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