Oil & gas news

DRILLING OF FIRST EXPLORATORY WELL ON ABSHERON TO COMPLETE IN JUNE

Drilling of the first exploratory well on "Absheron" prospect is scheduled to complete in late June. According to a source from "Chevron", project operator, 200 meters more remain before the well-depth reaches the mark of 6,500 meters.

2 appraisal wells will be drilled afterwards. Designed depth of the first is 6,700 meters in 520 meters of water. The drilling is executed by the "Istiglal" drilling rig.

The SOCAR president Natig Aliyev has reportedly stated that he was looking forward to the results of the exploration drilling on Absheron. He even compared predicted reserves of the field with those of Shah-Daniz.

SOCAR holds a 50% stake in the contract, Chevron has 30% and TotalFinaElf 20%.

ONSHORE PRODUCERS HIKE GAS VOLUME WITH OIL PRODUCTION UNCHANGED

SOCAR onshore oil and gas producing units have scaled up gas production by 5% in January-May 2001 to last year, extracting 65,312,000 cubic meters of gas. Except Bibiheibatneft (99.8% of the plan) and Binagadineft (99.1%), all the producing units have increased gas production. The following is the share of separate oil and gas producing units in 5 months since early 2001: Balakhanineft - 3,850,000 cubic meters (101.2%), Amirov - 16,588,000 (101.1%), Surakhanineft - 9,036,000 (130,4%), Taghiyev - 3,797 (100.6%), and Siyazanneft - 17,031,000 cubic meters (105.1%).

In January-May, 2001, onshore units produced a total of 358,592 tons of oil, or as much as in the same period of 2000.

Only in May oil and gas production exceeded planned targets over 6%. All the units over-fulfilled gas and oil extraction plans. In January-May of 2001, a total of 75,580 tons of crude and 13,680,000 cubic meters of gas were produced.

OIL PRODUCING JVs HIKE PRODUCTION

According to a SOCAR source, in 2001 Joint Ventures engaged in oil and gas production have hiked oil production by an average of 15% to last year. The biggest increase has been achieved by "Salyan-Oil Ltd." JV, 153.9%. Also above last year's have been the results of "Shirvan-Oil", 101.7%, and "Anshad-Petrol", 100.7%. Two other JVs have reduced oil production indices: "Karasu" operating company, 95.9%, and "AzGerNeft", 97.1%.

In January-May, 2001, "Karasu" produced 55,495 tons of oil, "Shirvan-Oil" 88,197 tons, "Anshad Petroil" 17,572 tons, "Salyan-Oil" 108,985 tons, and "AzGerNeft" 18,591 tons.

As far as oil production in May is concerned, joint ventures have over-fulfilled the plan by 12.2%. Three of them, "Anshad Petrol", "Salyan-Oil Ltd." and "Shirvan-Oil", have over-fulfilled the plan, while "Karasu" and "AzGerNeft" have under-fulfilled the assignment.*

OFFSHORE GAS PRODUCTION DECLINES SINCE 2001

Gas production by 6 of SOCAR's offshore oil and gas production units has declined by 8%, or by 162,800 cubic meters, to last year's. A total of 1,872,551,000 cubic meters were produced in 5 months.

As compared to 2000, "Neft Dashlari" has decreased gas production by 2.5%, Gum Adasi by 24.8%, Bulla-Daniz by 8.8%, and Narimanov by 4.3%. The other two have hiked gas production: 28 May by 3.1% and Absheron-Neft by 7.8%.

The 28 May unit has produced the most - 899,257,000 cubic meters.

Gum Adasi has produced 478,755,000 cubic meters, Bulla-Daniz 236,729,000, Narimanov 223,100,000, Neft Dashlari 20,700,000, and Absheron-Neft 14,010,000.

A total of 391,500,000 cubic meters were produced offshore in May.

SOCAR OFFSHORE OIL PRODUCTION DOWN

Three oil and gas producing units of the Offshore Oil and Gas Production

Unit have decreased offshore oil production as compared to the first five months of 2001, as the Bulla Daniz unit fulfilled the plan by 73.2%, the

Narimanov by 95% and the 28 May by 98.7%. In all, however, the production did not manage to exceed last year's limit, making up 99% to the year of 2000.

Boosting production were oil and gas producing units Gum Adasi (109.4% of the plan), Absheron Neft (107.1%) and Neft Dashlari (102.5%).

Actually, over 82% of the oil occur on the 28 May unit, as it produced a total of 2,456, 192 tons of crude. This is followed by the Neft Dashlari producing unit (332,368 tons), the Narimanov unit (121,500), Gum Adasi (67,144), AbsheronNeft (64,560) and Bulla Daniz (29,015).

As far as the May of 2001 is concerned, a total of 629,427 tons of oil were produced offshore with the following share of oil and gas producing units in production: Neft Dashlari (67,917 tons), 28 May (503,417). AbsheronNeft (13,300), Gum Adasi (13,688), Narimanov (24,900), and Bulla Daniz (6,205).

Azernews

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