Norway’s Equinor and Azerbaijan’s state oil company SOCAR are discussing the project schedule for the newly-discovered Karabakh field, Equinor told Trend.
SOCAR and Norway’s Equinor have confirmed a discovery of Karabakh field located 120 kilometers offshore, east of Baku, in the Azerbaijan sector of the Caspian Sea. Its oil reserves estimated more than 60 million tons.
"We are encouraged by this oil discovery. KPS-4 confirmed our prognozed well result. Our intention is to continue to mature the field development project towards investment decision. With our partner SOCAR, we intend to optimize the facility design based upon results of the appraisal well," said Equinor.
"The detailed project schedule is being discussed with our partner SOCAR. We will use the results from the appraisal well as the basis for our planning going forward."
Drilling of the first appraisal well at Karabakh oil field was started on December 23, 2019. The well was drilled in water depth of 180 meters by the Dada Gorgud semi-submersible drilling rig operated by SOCAR’s Caspian Drilling Company (CDC). The reservoir is at a depth of approximately 3.4 kilometers. Estimated size of the discovered volumes of oil and gas are satisfactory for pursuing commercial development of the Karabakh field.
The Karabakh prospective structure was identified in 1959 as a result of seismic surveys. It was specified in 1984 and its oil and gas reserves were confirmed in 1997-1998 through exploration drilling. The oilfield is located 120 km east of Baku, at a depth of 150-200 meters in the open sea.
The consortium operated by Caspian International Petroleum Company (CIPCO) drilled three exploration wells in the Karabagh PSA signed in 1995: two wells found gas in the southeast portion of the structure and the third well indicated presence of oil in the western part of the structure. In 1999, the PSA was terminated due to the non-commercial discovery.
In May 2018, SOCAR Karabagh and Equinor signed a Risk Service Agreement related to development of Karabagh Oil Field in the Azerbaijan Sector of Caspian Sea. According to the agreement, they hold equal shares.
Since 1994, SOCAR and Equinor have been cooperating in important joint projects, including the operating of the Azeri Chirag and Deep Water Gunashli (ACG) oil field.
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