Salyan Oil Operating Company to Continue Work on Repair and Rehabilitation of Wells
Azerbaijan, Baku / corr Trend S.Aliyev/ By the end of the year, the Salyan Oil Operating Company, which is developing the Kursangi-Garabaghly onshore field of Azerbaijan, will carry out repair and rehabilitation work in the wells. Earlier, the Company completed a drilling program for this year, in which they drilled five wells. Currently, the data obtained during drilling is being studied. The future drilling program will depend on the results of the studies, a source stated at the State Oil Company of Azerbaijan (SOCAR). The Salyan Oil operating company defined its 2007 budget for work at Kursangi-Garabaghly in the amount of $43mln. In general, this year it is planned to drill five operational wells with a projected depth of 3,500m.
The cost of operations at Kursangi-Garabaghly for CNPC Hong Kong constituted $74.294mln in 2006 as compared to $99.73mln in 2005.
A twenty-five 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 (CNODC) and CNPC ( Hong Kong) Ltd. (CNPCHK), each holding a 25% stake.