BP expects to discover oil at new block

4 July 2019 19:28 (UTC+04:00)

 

By Leman Mammadova

BP, a British oil and gas company, conducts seismic surveys in the Caspian Sea to evaluate perspective hydrocarbon structures within the basin.

The cooperation with BP continuing since 1992 is of the utmost importance in the development of oil and gas industry in Azerbaijan. Shortly, the company will begin seismic survey at the prospective D230 block in the Azerbaijani sector of the Caspian Sea. BP has high expectations for the block. In case of successful exploration results, a ‘second’ Azeri-Chirag-Guneshli (ACG) may be opened there.

Block D230 is located approximately 80 km from the Azerbaijani coastline in water depths ranging between 100 and 800 m and covers an area of about 3,222 square kilometers.

“BP plans to launch three-dimensional (3D) seismic explorations at the prospective D230 block in September this year,” Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey said on July 4 in Baku.

Jones added that depending on the results of the seismic explorations, for which the expectations are positive, the company plans to start drilling the first exploration well at this block in mid-2020.

He noted that BP expects to discover oil on the D230 block as well as following exploratory drilling in the shallow waters around the Absheron Peninsula (SWAP). “As known, we have signed a contract for the development of the SWAP. This is a very promising contract, with great potential. According to the results of exploration work on this contract area, we expect to discover oil.”

In his words, the company plans to start drilling the first exploratory well in SWAP in late 2019.

He also recalled that Satti jack-up rig was delivered to Azerbaijan to conduct exploration drilling. “Satti rig will be involved in drilling operations in the SWAP after a certain modernization.”

SOCAR and BP signed a production sharing agreement (PSA) in April 2018 to conduct joint exploration work on potential prospective structures of the D230 block in the North Absheron basin in the Azerbaijani sector of the Caspian Sea.

Under the PSA, which is for 25 years, BP, holding a 50 percent interest, will be the operator during the exploration phase, while SOCAR will hold the remaining 50 percent interest.