BAKU, Azerbaijan, April 6. Azerbaijan’s state oil company SOCAR and GL International LLC have inked a Risk Service Agreement related to rehabilitation and development of the block including the Buzovna-Mashtaga, Gala and Zyra oil fields in the country, Trend reports.
The Contract Area covers an area of approximately 20.5 square kilometers and consists of three separate fields.
SOCAR, being the owner and operator of the block has carried out certain work related to the Contract Area and now the two companies wish to promote the rehabilitation and development of the block in order to increase production of petroleum existing in its natural state in, or under the Contract Area.
The contract consists of the Interim Period and Development and Production Period.
The Interim Period shall commence on the effective date and shall expire at the end of performance of the obligatory work or on the date immediately following a period of 24 months from the effective date, whichever is earlier. The interim period may be extended upon the contractor’s request on the terms mutually agreed by the parties.
Within 60 days after the commencement of the Interim Period, contractor shall prepare and submit to SOCAR for its approval a work program for Interim Period (Minimum Obligatory Work Program).
The Minimum Obligatory Work Program to be performed by the contractor shall include the following work:
- Create an electronic well and reservoir database, including the digitalization of well histories and logs;
- Develop geological and hydrodynamic models of fields, estimating reserves and selecting development options;
- Drill and complete by modern methods of at least six new wells in accordance with the selected development project;
- Conduct the relevant environmental impact assessment study, as referred to in Environmental Standards and Azerbaijani legislation;
- Analyse non-operating and liquidated well stock and workovers on at least 30 wells;
- Develop and implement plans for ensuring the utilization of produced water and collection of Associated Natural Gas;
- Provide SOCAR with all information on operations both routine and final, drilling of each well and all other work.
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