SOCAR, Equinor consider accelerated exploration, development scenarios in Azerbaijan
State Oil Company of Azerbaijan Republic (SOCAR) and Equinor are considering scenarios to accelerate exploration and drilling of Karabagh field prospects and possible reconsideration of the field development plan following encouraging preliminary exploration work.
The two companies met on the 16th March to discuss Karabakh field development and the exploration of prospective structures carried out jointly by SOCAR and Equinor on equal sharing basis, SOCAR said in a release on the 16th March.
In May 2018, SOCAR Karabakh and Equinor signed agreements to appraise and develop Karabagh oil field in the Caspian Sea and explore an area to the north-west designated Ashrafi-Dan Ulduzu-Aypara.
The exploration area lies 50 km east of Baku, around 14 km to the east of Azerbaijan mainland in water depths of 20-225 metres. In March 2020, the companies confirmed a discovery at Karabagh.
Exploration of Ashrafi-Dan Ulduzu-Aypara began in second-half 2018 and 2D and 3D seismic exploration was completed in 2019. Results were processed in 2020, and interpretation is currently under way.
Preliminary results demonstrated that oil and gas reserves in the prospects are higher than previously expected, SOCAR said, and exploration drilling may be carried out in the future to prove the reserves.
In the coming weeks, a joint working group of SOCAR and Equinor will consider various options for the continuation of the Karabakh project and explore opportunities for synergy between the development of Karabakh field and prospective new fields.
The companies “aim to reach the highest levels of production on the jointly exploited fields during this decade, when oil and gas prices are expected to peak,” SOCAR said.
Source: Oil & Gas Journal