A 50-50 joint operating company formed by Statoil Azerbaijan and State Oil Co. of Azerbaijan Republic (SOCAR) will appraise and develop Karabagh oil field in the Caspian Sea and explore an area to the northwest under agreements signed May 30.
The Karabagh work will include the drilling of an appraisal well this year under a risk-service agreement that envisions installation of a platform and first production in 2021.
Karabagh is in 150-200 m of water 120 km east of Baku, just north of Azeri-Chirag-Deepwater Gunashli (ACG) oil field operated by Azerbaijan International Operating Co. The structure was identified by seismic data in 1959 and confirmed by drilling in 1997-98. Socar and Statoil Azerbaijan both have partnership interests in AIOC.
The exploration, starting with a seismic survey, will occur under a production-sharing agreement in an area designated Ashrafi-Dan Ulduzu-Aypara northwest of Karabagh field.
Prospects at Dan Ulduzu and Ashrafi are in 80-180 m of water 100-110 km northeast of Baku. Aypara, identified by seismic surveys in 1980, is in open sea 90 km northeast of Baku.
Statoil Azerbaijan soon will be renamed Equinor Azerbaijan to align with the new name of its parent company.
