The operating company Binagadi Oil, is carrying out an active work aimed at preparing drilling new wells on the onshore field Binagadi, Particularly, a preparation for a large-scale work is underway now. The Company placed an order in the Centre for Fields Modeling to receive the geological model of the area, a source in SOCAR (State Oil Company of Azerbaijan) told Trend.
A digitizing of the data from the wells and other works are underway now. At the same time, an oil production from the existing wells is going on. As soon as the field is studied, direct works on drilling new wells will be launched there, SOCAR pointed out.
An agreement on exploration, rehabilitation, development, and product sharing on the bloc of the onshore fields Binagadi was signed between SOCAR and AZEN (a joint company established by Turkey's AZEN and Azerbaijan`s AzPetrol equal product sharing in Baku on June 18, 2006. Oscar's share in this agreement is 25%, AZEN`s - 75%. At the same time, the financing of SOCAR`s share will be carried out by AZEN.
In accordance with this agreement, AZEN is obliged to increase the daily oil production on the contract bloc in one and a half time within the next three years, as well as repay a bonus at a rate of $1 m. The bloc with the total area of 4.3 thousand hectares has been developed since 1896. Its total geological reserves make up 132 m. tons of oil, its recoverable resources 12.8 m. tons. At present, the oil production reaches 286 tons of oil a day. (106.000 tons were produced in 2003).
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