Azeri development drilling programs progress

June 1, 1998
Azerbaijan is seeking to increase oil production from its Caspian Sea fields by extending development drilling in producing fields. State Oil Co. of the Azerbaijan Republic (Socar) is seeking foreign firms to participate in rehabilitation projects in five offshore fields. And Azerbaijan International Operating Co. (AIOC), a major international consortium, has firmed up its plans for extended development of Azeri, Chirag, and Guneshli fields (OGJ, Apr. 13, 1998, p. 34).

Azerbaijan is seeking to increase oil production from its Caspian Sea fields by extending development drilling in producing fields.

State Oil Co. of the Azerbaijan Republic (Socar) is seeking foreign firms to participate in rehabilitation projects in five offshore fields. And Azerbaijan International Operating Co. (AIOC), a major international consortium, has firmed up its plans for extended development of Azeri, Chirag, and Guneshli fields (OGJ, Apr. 13, 1998, p. 34).

Field rehab work

Socar is attempting to lure foreign oil companies to bid for rehabilitation of five Caspian Sea fields. Initial presentations, organized by MAI Consultants Ltd., Epsom, U.K., will be held in Baku during June 8-10. These will be followed by presentations in London and Houston, at dates still to be set.

MAI said Socar is looking for bids to evaluate and ultimately rehabilitate and expand five producing fields: NGDU Narimanov, Bulla Deniz, Palchyg Tapesi, Neft Dashlary, and Bakhar.

The consultant said these five major assets will be key to production in Azerbaijan over the next 5 years. A feasibility study of proposed projects was carried out by MAI, Edinburgh Petroleum Services Ltd., and the British Geological Survey.

Valekh Aleskerov, Socar's director of foreign investment, said: "The combined recoverable reserves of these fields is estimated by our consultants at 450 million bbl of oil and 3.4 tcf of gas. These fields will provide an immediate and significant revenue stream for both the investor and the Azerbaijan treasury."

Meanwhile, AIOC has decided to use two wellhead platforms and a production ship to extend development of Azeri, Chirag, and Guneshli fields in the Caspian Sea.

AIOC interest holder Statoil AS said the ship will have capacity to process 300,000 b/d of crude oil. Current production is 50,000 b/d, from a platform brought into production last year.

This second phase of development is expected to cost $3 billion, said Statoil. The final decision on the plan is expected by AIOC early next year. By yearend, AIOC intends to have 10 production wells in place.

The existing platform has 24 well slots and capacity to produce 115,000 b/d of oil.

Although the number of Caspian Sea exploration licenses off Azerbaijan is growing, work is held up by a lack of suitable drilling rigs (OGJ, Apr. 13, 1998, p. 34).

Copyright 1998 Oil & Gas Journal. All Rights Reserved.