BAKU, Azerbaijan, Sept.4
By Leman Zeynalova – Trend:
The possibility of exporting the oil and gas to be produced from Azerbaijan’s newly-discovered Karabagh field via the transportation system of Sangachal terminal is being studied, Trend reports citing Azerbaijan’s state oil company SOCAR.
It is planned to produce first oil and first gas from the field in 2023 and 2025, respectively. The production peak is expected in 2026.
SOCAR and Norway’s Equinor have confirmed a discovery of Karabagh field located 120 kilometers offshore, east of Baku, in the Azerbaijan sector of the Caspian Sea. Its oil reserves estimated more than 60 million tons.
Equinor continues to work with SOCAR to progress and mature the Karabagh project, and this includes detailing a possible development solution. No investment decision has been taken by Equinor at this stage.
Moreover, an informed source in Azerbaijan’s oil and gas market told Trend that it will produce 1.5 million tons of oil per year.
The Karabagh prospective structure was identified in 1959 as a result of seismic surveys. It was specified in 1984 and its oil and gas reserves were confirmed in 1997-1998 through exploration drilling. The oilfield is located 120 km east of Baku, at a depth of 150-200 meters in the open sea.
The consortium operated by Caspian International Petroleum Company (CIPCO) drilled three exploration wells in the Karabagh PSA signed in 1995: two wells found gas in the southeast portion of the structure and the third well indicated presence of oil in the western part of the structure. In 1999, the PSA was terminated due to the non-commercial discovery.
In May 2018, SOCAR Karabagh and Equinor signed a Risk Service Agreement related to development of Karabagh Oil Field in the Azerbaijan Sector of the Caspian Sea. According to the agreement, they hold equal shares.
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