The Chinese company CNPC Hong Kong Ltd has announced the initial results of company work in the first half-year of 2006, Trend reports. According to a report on the company operations, within the framework of PSA on Kursangi-Garabaghly onshore field development in January-June 2006, CNPC produced 530,000 barrels of oil (72,000 tons) against 590,000 barrels (80,000 tons) in the similar period of 2005.
In this period the company profits (after taxes) comprised $41.11mln against $25.68mln or $15.43mln (60.07%) in January to June 2005,
Regarding the participation in another project in the onshore fields of Azerbaijan вЂ" Southwest Gobustan, where CNPC Hong Kong Ltd acquired 31.41% in Commonwealth Gobustan Ltd in March 2003, the exploration expenses made up $7.85mln against $6.1mln in January to June. Fall in investments was a result of a joint control over operations.
In January-June the company drilling expenses constituted $21.17mln against $9.06mln. expenses for engineering and relevant operations constituted $15.06mln against $15.34. In this period the Company has spent funds for purchase of materials, whereas last years expenses for this respect made up $1.47mln.
Salyan Oil operating company defined its 2007 budget for implementation of work at Kursangi-Garabaghly in the level of $43mln. In general, this year it is planned to drill 5 exploitation wells with the project depth at 3,500 meters.
A 25-year production-sharing agreement on the development of Kursangi and Garabaghly oil fields was signed in December 1998. Salyan Oil was set up a year later, and is currently owned by the State Oil Company of Azerbaijan (SOCAR), with 50% interest, as well as Chinese companies China National Oil & Gas Exploration and Development Corp. (CNODC) and FAL, each holding a 25% stake.
A contract on the development of Southwest-Gobustan onshore field was signed on 2 June 1998. Shareholders in the project are SOCAR with a 20% stake and Vitol, CNPC, CNODC with a 80% stake.