Azerbaijani Ecology Ministry Waiting for Ecology Document from RussNeft
Azerbaijan, Baku / corr Trend S.Babayeva / Huseyn Bagirov, the Azerbaijani Minister for Ecology and Natural Resources, announced the Russian oil company RussNeft, which is participating in the development of Azerbaijani onshore fields Hovsan-Zykh jointly with the SOCAR, is preparing to present to the Ministry of Ecology and Natural Resources a report on Environmental Impact Assessment (EIA) while conduct of oil and gas operations.
A representative office of the Russian oil company RussNeft will open in Baku on May 3.
Russian RussNeft signed a PSA (Production Sharing Agreement) contract with the State Oil Company of Azerbaijan (SOCAR) on the joint development of Azerbaijani onshore oil field Hovsan, Zykh Trend reports. SOCAR's has 25% share in the contract and RussNeft obtained 75% of the PSA contract.
In accordance with the Contract, the Company should increase its oil production from Hovsan-Zikh in 1.5 times every two years.
The contract area of Zykh field is 65,000 sq. m. The remaining oil reserves are 12 mln tons. There are 234 wells in the area. 168 of them have been in operation during different periods of time. Presently, oil production is carried out by means of 10 wells that make up 25 tons and 20,000 cu. m of gas per day. The volume of the extracting water reservoir is 470 cu. m per day.
Hovsan field was discovered in 1948. The current oil production from the field is 260 tons and 90,000 cu. m of gas a day.
RussNeft OJSC, an oil company, which was established in September 2002. Presently, the annual oil production of the Company exceeds 17mln tons. Its extracting reserves are over 630mln tons. Russian company has 30 production assets, 3 oil refineries, one transport enterprise and over 300 petrol stations.