GOC lifts over 60m cu m a year from Southwest Gobustan

Oil&Gas Materials 20 December 2005 12:54 (UTC +04:00)

As a result of resting of well 108 at Duvanniy field, part to the Southwest Gobustan bloc, the Gobustan Operating Company (GOC) achieved a debit of 170,000 cu m of natural gas a day (62 million cu m of fuel a year), Arawak Energy announced.

GOC is an affiliated company, charged in the development of the Southwest Gobustan under the PSA undersigned with SOCAR. Commonwealth Gobustan Limited (CGL) holds 80% stake in GOC, while the SOCAR holds the rest 20%. Arawak Energy holds 37.17% stake in CGL, and the rest (62.83%) belongs to a group of companies China National Petroleum Company.

At present work on the achievement of the exploration section of Kanizadag 101, located in the coastal bloc Southwest Gobustan is underway, Trend reports. “The well will be more probably spudded till the depth of 4000 meters, while the company expects to achieve the results of testing in January 2006,” the company said.

In the end of December 2005 Gobustan Operating Company Ltd (GOC) will set up solemn ceremony on sale of commercial gas in the South-West Gobustan contract area under the contract signed earlier with the State Oil Company of Azerbaijan. The price of gas is $1.29/1 million BTU. Official ceremony of first gas delivery will be held at Southwest Gobustan contact area in January 2006. In the first stage GOC plans to sell to the SOCAR 400,000 cu m of natural gas a day (146 million cu m a year) from four wells drilled in the South-West Gobustan.

According to an independent oil and gas consultant - Ryder Scott the estimated reserves of the field comprise 51.6 million barrels of oil in equivalent, while general (estimated plus possible) 135.4 million barrels of oil in equivalent. The estimated oil reserves comprise 15.8 million barrels and 214.65 million cu feet of gas. The general (estimated plus possible) reserves make up 66.6 million barrels of oil and 412,933 million cu feet of gas.