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Oil output increases 53% in Garachukhur Field

06 October 2008 08:22 (UTC +04:00)

Baku. Vuqar Mustafayev â€“ APA-Economics. Garachukhur Field onshore Azerbaijan produced 10 000 tons of oil during January-August, up 52.7% on the same period last year. Oil output was 1 100 tons in August alone, said the State Oil Company of Azerbaijan.
The State Oil Company of the Azerbaijan Republic (SOCAR) and the Noble Sky Ltd., a joint venture founded by Chinese Shengli Oil and the United Arab Emiratesâ€™ (UAE) Middle East companies, signed a restoration, development and production sharing agreement on the block entering the Garachukhur onshore oil field in June, 2004. Azeri parliament ratified the PSA on April 29, 2005.
The agreement was signed by SOCAR President Natig Aliyev and Vice President of Shengli Oil Ma Mingue.
SOCAR holds 25%, while Noble Sky 75% of share in the contract, envisioning $220 million for the development operations in investment.
The agreement is effective for 25 years. However, its term may be extended for another five years by consent of the signatories. The gas to be produced from the Garachukhur field will be delivered to the state.
The Garachukhur field, which was discovered in April 1928, is located in the central part of the Absheron Peninsula, 15 kilometers east off Baku. Since 1954, no exploratory operations have been conducted in the field that currently has approximately 5.6 mm tons of oil reserves.
45 out of 121 wells in the Garachukhur field are active.