Gobustan Operating Company Ltd (GOC) expects the construction of a gas compression station on Southwest Gobustan field, which is needed for gas operations with the State Oil Company of Azerbaijan (SOCAR), to complete in two weeks. The SOCAR told Trend at present the connection of the pipelines from the well to the gas-compression station is underway.
вЂњPipelines were built from four gas wells on Duvanniy field to the gas compression station, which will pass gas to the pipeline of the SOCAR,вЂќ the same source said. The total length of the pipeline coming out the wells is 11km.
The first gas delivery to the SOCAR will more probably start upon the completion of the construction of necessary infrastructure.
SOCAR said that 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. The SOCAR said that increase of import gas prices by Gasprom from $60 per 1000 cu m to $110 per 1000 cu m will not affect on the gas prices purchased under a contract with GOC. вЂњGas prices will not change and make up $1.29 per 1 million BTU,вЂќ the spokesman for SOCAR said. $1.29 per 1 million BTU comprises some $46 per 1000 cu m.
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.
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.
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.