SOCAR Announces Volume of Gas Purchases from Foreign Companies

Oil&Gas Materials 2 February 2007 11:25 (UTC +04:00)

Gobustan Operating Company (GOC), which is involved in the development of South-West Gobustan contract area, sells 40,000 cu m of vacant gas a day to the State Oil Company of Azerbaijan (SOCAR), Trend reports.

The current contract price is $1.33 per 1mln. BTU (some $47.4 per 1,000 cu m).

At present the company delivers gas from 3 wells. It is connected to the gas transportation system of the fourth and fifth wells, SOCAR announced.

After the commissioning of the 5th well the volume of export gas may increase to 350,000 cu m.

Gobustan Operating Company (GOC) has developed Southwest Gobustan under the PSA agreed with SOCAR. In February 2006 the company began selling free gas to Azerigas Company of SOCAR. In GOC 80% stock belongs to Commonwealth Gobustan Limited and 20% to SOCAR. In Commonwealth Gobustan Limited 37.17% belongs to Arawak Energy and 62.83% to China National Petroleum Company.

According to the data by oil and gas consultant Ryder Scott, the estimated 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.