Ashrafi field

Ashrafi
Country Azerbaijan
Location near Absheron peninsula
Offshore/onshore offshore
Operator SOCAR
Partners previously operated by North Absheron Operating Company (NAOC) consortium:
Amoco (30%),
SOCAR (20%),
Itochu (20%),
Unocal (25.5%),
Delta Oil Company (4.5%)
Field history
Discovery 1970s
Start of development 1997
Production
Estimated oil in place 6 million tonnes
(~ 7×10^6 m3 or 40 MMbbl)
Estimated gas in place 25×10^9 m3 (880×10^9 cu ft)

Ashrafi field is an oil and gas field located 105 km (65 mi) northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago.[1][2]

Dan Ulduzu-Ashrafi bloc

The Production sharing agreement (PSA) for exploration, development and production between SOCAR and NAOC consortium for Dan Ulduzu-Ashrafi bloc was signed on December 14, 1996. The contract area is 453 km2.[3] The water depth on location is 160 metres (520 ft) - 180 metres (590 ft).[1] According to the agreement, 3 exploration wells would be drilled and if successful, the production would start in 2003 with an intended output to reach 7 million tons per year by 2007. Azerbaijan would also have been paid $75 million in bonuses. Total capital investment was estimated to be at $2.5 billion.[4] After drilling of 3 exploration wells, 2 million tons of oil was discovered at Dan Ulduzu and 6 million tons was found at Ashrafi field in January 1998.[5] During the exploration stage, in 1998-2001, the price for barrel of oil was below $20.[6] Due to low energy prices, the bloc was not considered commercially viable and was thus abandoned.[7] On March 7, 2000 the contract for exploration ended and was not renewed by the consortium.[2]

Ownership

The project was operated by North Absheron Operating Company (NAOC) which consisted of the operator Amoco (acquired by BP) (30%) and partners SOCAR (20%), Itochu (20%), Unocal (25.5%), Delta Oil Company (4.5%).[8] The company had spent a total of $64.5 million for exploration.[6] The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in mid-1990s.[9]

Drilling renewed

In early 2004, SOCAR confirmed plans to revitalize the project at Dan Ulduzu and Ashrafi fields in 2007.[10] SOCAR intends to drill 19 wells by 2015 which will require an investment of 2.76 billion Azerbaijani manats.[11][12] In 2007, SOCAR signed a Memorandum of understanding with the German company Wintershall for exploration works at Ashrafi.[8] Currently, the drilling is being carried out by semi submersible drilling vessel Dede Qorqud of Caspian Drilling Company, contracted by SOCAR.[13][14]

See also

References

  1. 1 2 "Подписание новых нефтяных контрактов в рамках нефтегазовой выставки Caspian Oil&Gas-2004 не планируется - президент ГНКАР" [Signing of any contracts during Caspian Oil&Gas-2004 is not being planned - President of SOCAR]. Kazakhstan Today. 2004-05-12. Retrieved 2010-06-28.
  2. 1 2 "AFR Azərbaycanla enerji sahəsində əməkdaşlığın intensivləşdirilməsinin tərəfdarıdır" [Germany is interested in intensifying cooperation with Azerbaijan in the energy sector]. Interfax Azerbaijan. 2007-05-22. Retrieved 2010-06-28.
  3. ↑ Betty Blair (Summer 1998). "Dan Ulduzu and Ashrafi. No longer in operation after April 1999". Azerbaijan International. Retrieved 2010-06-28.
  4. ↑ Betty Blair (Winter 1996). "Fourth Oil Consortium Signed. Dan Ulduzu and Ashrafi Prospects". Azerbaijan International. Retrieved 2010-06-28.
  5. ↑ Huseynov, Vagif (2002). Caspian oil. Economy and Geopolitics. New York: OLMA-PRESS. p. 52. ISBN 5-224-03880-4. Retrieved June 28, 2010.
  6. 1 2 "Нет худа без добра. "Ашрафи" нашло судьбу" [Good things happen. Ashrafi found its destiny]. Retrieved 2010-06-28.
  7. ↑ I. Mammedli (2007-05-25). "ОБСУЖДЕНЫ ВОПРОСЫ УЧАСТИЯ В МЕЖДУНАРОДНОЙ ВЫСТАВКЕ "НЕФТЬ И ГАЗ КАСПИЯ"" [Issues related to Caspian Oil and Gas Expo are discussed]. Vyshka. Retrieved 2010-06-28.
  8. 1 2 "Wintershall Azərbaycanın dəniz yatağında kəşfiyyat quyusu qaza bilər" [Wintershall might start drilling in Azerbaijani oil field]. Trend News Agency. 2007-03-02. Retrieved 2010-06-28.
  9. ↑ "Speech of Heydar Aliyev on PSA agreement with foreign investors". Retrieved 2010-06-28.
  10. ↑ "ГНКАР приступит к освоению месторождений "Карабах" и "Ашрафи-дан улдузу"" [SOCAR will start development of Karabakh and Ashrafi-Dan Ulduzu fields]. Day.az. 2004-04-12. Retrieved 2010-06-28.
  11. ↑ Nurlana Guliyeva (2006-02-17). "Contract of the century, or a day longer than a century...". Region Plus. Retrieved 2010-06-28.
  12. ↑ "SOCAR. Oil Strategy of Azerbaijan: successes and perspectives". Retrieved 2010-06-28.
  13. ↑ "Caspian Drilling Company. Our Company". Retrieved 2010-06-28.
  14. ↑ "PROSPECTS OF DRILLING IN THE CASPIAN SEA". Retrieved 2010-06-28.

External links

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