Gobustan Operating Company, which is involved in the development of South-West Gobustan contract area, has ceased export of vacant gas for the State Oil Company of Azerbaijan (SOCAR). Gas price is $1.29/1m BTU ($1.29/1m BTU - around $46/1,000 cu m).
According to the SOCAR, the gas supply was ceased due to technical reasons. Over a moth it is planned to resume export of fuel following the resolution o technical issues, the SOCAR said.
GOC transported gas from 2 wells located in South-West Gobustan in the volume of 100,000 cu m per day.
The SOCAR said that as soon as the technical problems are resolved gas will be delivered from 4 existing wells in the contract area in the volume of 250,000 cu m a day. After the commissioning of the fifth wells the volume of gas for sale will be increase to 350,000 cu m.
In 2006 Gobustan Operating Company Ltd (GOC) plans to conduct two and three-dimensional (2D & 3D) seismic surveys on its contract area Southwestern Gobustan. The Company will conduct three-dimensional seismic survey on the fields Dashgil, Duvanniy and Kanizdagh on 200 cu km square, entered South-West Gobustan, two-dimensional survey - Central and Northern blocks on 480 cu km square.
Southwestern Gobustan is developed by GOC under PSA, concluded with SOCAR. 80% of the share at Gobustan Operating Company belongs to Commonwealth Gobustan Limited, 20% - SOCAR. 37.17% of the share at Commonwealth Gobustan Limited 37.17% belongs to Arawak Energy, 62.83% - China National Petroleum Company.
In accordance with the data by oil and gas consultant Ryder Scott, the proved reserves of the field make up 51.6m barrels of oil equivalent, the total reserves (proved and possible) - 135,4m barrels of oil equivalent. The proved reserves of oil comprise 15.8m barrels, gas - 214,65m cu f. The total reserves make up 66.6m barrels of oil and 412,933m cu f of gas.