BP-Azerbaijan to decide on site for drilling exploration well at Shafag-Asiman in 2013
BAKU. Jan 11 (Interfax) - BP-Azerbaijan will decide on the site for drilling an exploration well in 2013 at the Shafag-Asiman structure in the Azerbaijani sector of the Caspian Sea, the company told Interfax.
The company has now completed 3D seismic exploration at the structure. "Seismic research was completed on January 4. The received data will be processed. The interpretation and decision on the site to drill the exploration well will be made in 2013," the company said.
Caspian Geophysical carried out BP's order for seismic research using the vessel Gilavar, which was deployed to Azerbaijan especially for these operations by August 1, 2011.
It was earlier reported that the company plans to start exploration drilling at the contracted block in the fourth quarter of 2016. The well's depth will come to around 6,500-7,000 meters. The sea-depth in the region of block varies between 650 and 950 meters. According to preliminary information, the production stratum at the structure comes to around 3 kilometers and starts at depth of between 5 and 8 kilometers.
The contract between the State Oil Company of the Azerbaijani Republic and BP Exploration was signed in July 2010 and came into force in June 2011. The stake for each party in the contract comes to 50%. The contract is valid for 30 years with an option for extension by five years.
According to the contract's terms, if the exploration program confirms oil reserves at the structure, BP Exploration should pay the Azerbaijani government a bonus worth $1 million for every 100 million barrels of production. Within the three days after the commencement of the block's commercial development the state should be paid a $50 million.
In addition, BP Exploration annually should make acre payments to Azerbaijan at $2,000 per square kilometer at the contracted section.
The Shafag-Asiman block covers 1,110 square kilometers. No geological exploration has been implemented at the block to date.