Baku, Azerbaijan, Feb.26
By Leman Zeynalova – Trend:
Proven reserves of Azerbaijan’s Bahar-Gum Deniz block of oil and gas fields have increased by 51 percent year-on-year in 2017, a source in the country’s oil and gas market told Trend.
The relevant exploration was carried out by Canada’s GLJ Petroleum Consultants for Greenfields Petroleum, full owner of Bahar Energy which is the operator of Bahar-Gum Deniz block.
“As of December 31, 2017, the total proved reserves of Greenfields Petroleum were evaluated at 36,766 million barrels of oil equivalent net to the company through its interest in Bahar Energy Limited, which is an increase of 51 percent over year-end 2016. The total proved plus probable reserves were evaluated at 53,171 million barrels of oil equivalent net to the company, an increase of 33 percent over year-end 2016,” said the source.
The net present value of proved reserves discounted at 10 percent (“PV10”) was $261 million net to the company at year-end 2017 (an increase of 88 percent from year-end 2016), while the PV10 of the proved plus probable reserves was $537.6 million (an increase of 69 percent from year-end 2016), added the source.
The source pointed out that the net proved plus probable reserves were substantially improved by the re-initiation of waterfloods which added 8.9 million barrels at Gum Deniz field. The company has commenced water injectivity testing on the first two injection wells.
“Bahar gas field net proved plus probable reserves were increased by more than 1.5 billion cubic meters as a result of expanding the recompletion program and planned drilling of four deeper gas wells. These new wells are planned to be drilled from existing offshore platforms with associated production facilities and flowlines,” noted the source.
The source also added that the project value was retained as a result of substantial cost saving measures that were undertaken to reduce costs associated with project operations, oil and gas workovers and platform refurbishment.
The contract for exploration, rehabilitation, development and production at Bahar and Gum Deniz block of offshore fields was signed by Azerbaijan’s state oil company SOCAR (20 percent) and Bahar Energy (80 percent) in 2009. Bahar field, developed since 1969, is located in 40 kilometers south-east from Baku.
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