SOCAR considers signing PSA to tap major onshore field

Azerbaijan’s state oil company SOCAR is considering signing a new production sharing agreement on the development of the onshore Balakhany oil field, SOCAR said Monday.

But the source did not spell out the company with which talks are being held.

10 wells will be drilled at the unique field in 2008, compared to 13 wells drilled in 2007. The crude extracted at the Balakhany-Sabunchi-Ramana field is used to produce rare freeze-resistant types of oils. Oil is produced there from relatively insignificant depths – about 1,200 meters.

The greatest number of wells among SOCAR’s oil-producing enterprises – 1,150 – are operated at Balakhany-Sabunchi-Ramana, with some of them being over 100 years old. The company’s geologists say the field holds enough oil for development. Hundreds of spots have been located to drill new wells.

215,480 tons of oil are to be produced at the field in 2008, compared to 216,122 tons in 2007.

A total of 335 million tons of oil have been extracted from the field to date.*