Baku, Azerbaijan, Sept. 28
By Maksim Tsurkov - Trend:
The Bahar Energy Ltd. company, operator of Bahar oil and gas project in Azerbaijan expects to double existing production in 2016, John Harkins, president & CEO at Greenfields Petroleum Corporation said.
He made the remarks Sept.28 during the 3rd Azerbaijan and Caspian Sea Oil & Gas Week 2015 conference in Baku.
The Bahar Energy Ltd. company includes Bahar and Gum Deniz deposits in the Azerbaijani sector of the Caspian Sea.
Greenfields Petroleum Corporation owns a 33.3-percent equity share in the Bahar Energy Ltd. company.
Harkins went on to add that in 2016, the company plans to continue its policy of reducing costs while increasing the efficiency of field development.
The company plans to double the daily volume of production at the field, bringing it to 10,000 barrels in oil equivalent of gas per day. Among the plans for 2016 he highlighted drilling of new oil wells to resume at end of 2016. This includes incorporated 3d seismic into development plan and tender for lower cost rigs, he said. Also, the company will continue to assess the deeper structures, said Harkins.
Earlier, SOCAR signed a PSA contract with Bahar Energy Limited for the exploration, rehabilitation and development of the Bahar and Gum Deniz offshore fields in the Azerbaijan sector of the Caspian Sea. Under the second part of the contract, which involves the exploration of the Bahar-2 structure, plans include drilling one exploration well in three years and another in the fourth year. According to preliminary calculations, Bahar Energy Limited's investment volume for 25 years will amount to $1 billion.
Bahar has operated since 1969 and is located 40 kilometers southeast of Baku. So far, the field has produced over 16.8 million tons of oil and approximately 128.7 billion cubic meters of gas.
During the next five years, experts predict a decline in gas production at Bahar of 15 percent and in condensate production of 10 percent.
SOCAR is engaged in gas production in Azerbaijan. The company produces fuel at the fields by its own expense. The bulk part of the produced gas is directed to meet the demand in the domestic market of Azerbaijan and some is exported to Georgia.
Under the technical operation of BP, the company produces gas from the Shah Deniz field, with the participation of foreign partners. Gas is supplied to the Azerbaijani market, as well as exported to Georgia and Turkey via the South Caucasus gas pipeline. Azerbaijan also receives the associated gas produced by the Azerbaijan International Operating Company from the Azeri-Chirag-Guneshli field.
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