BP-Azerbaijan company starts planning works for drilling of the first exploration well on the perspective bloc Shafag-Asiman in the Azerbaijani sector of the Caspian Sea, reads the report of BP-Azerbaijan company for quarter 2, 2016.
“We have completed interpretation of 3D seismic survey data done on this contract area. The process lasted 18 months and now about 6 months will be needed for the works for planning of the first exploration well drilling,” reads the report.
In quarter 4, 2016 BP-Azerbaijan planned to start the exploration drilling on the Shafag-Asiman contract bloc. However, in May 2014 the company said that the term of beginning of the drilling operations depends on the availability of a free drilling rig.
It was reported that the depth of the first exploration well on the Shafag-Asiman bloc is about 6500-7000 meters and high pressure and high temperatures are expected here during drilling. The sea depth in the area of the field varies between 650 and 950 meters. According to the preliminary data, the productive thickness totals about 3,000 km and the depth is between 5 and 8 km.
The contract for development of the bloc between SOCAR and BP Exploration signed in July 2010 and it entered into force in June 2011. The sides have 50% share each in the contract. The contract was signed for the period of 30 years with the possibility of prolongation by five years.
The exploration period is four years with the possibility of prolongation by three more years. At the first stage it is planned to drill two wells. If necessary two more wells will be drilled on the second stage. With transition to the operation period the sides will be joint operators.
According to the terms and conditions of the contract, if the exploration program confirms oil resources, then bonus per each 100 million barrels will be $1 million. The bonus of $50 million must be paid within three days after beginning of the commercial development of the bloc.
In addition, every year BP Exploration must pay per-acre payments to Azerbaijan of $2,000 per each sq.km. of the contract area.
Total area of the Shafag-Asiman bloc is 1100 sq.km. Until now no geological exploration works have been done here.—0-
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