'Azneft' PU Director General: Extractable residual oil and condensate reserves in developing fields make 187 mln tons - INTERVIEW

Baku. 21 September. REPORT.AZ/ Report News Agency presents an interview with Dashgin Iskenderov, Director General of “Azneft” Production Union of the State Oil Company of Azerbaijan Republic (SOCAR):

- Mr. Iskenderov, firstly, we would like to get information about production indicators. What is the volume of production on "Azneft" PU over the past period of this year, how much has this year's forecast been fulfilled? What amount of production accounts for onshore and offshore fields?

- The past eight months have been mentioned as a successful period for the "Azneft" Production Union. Significant works have been carried out at all offices and enterprises of the Union, new facilities and devices commissioned, complex measures conducted to increase production, further improve working conditions of oilmen. 4 113.9 thousand tons of oil, 3.43 billion cum of gas was produced on the Union in January-August, 2017 . 94.71% of oil production and 98.64% of gas production accounts for offshore fields. 6.22 mln. tons of oil, 5.3 billion cum of gas is forecasted to be produced by the year-end.

- How many fields are currently being operated by "Azneft"?

- Currently, "Azneft" PU carries out maintenance works in 28 oil and gas fields of the country. 13 of these fields are located in the Azerbaijani sector of the Caspian Sea and 15 offshore.

- What are the main goals for the next year? Has the work program been identified? What is the volume of production forecast?

- We attach great importance to the construction of new facilities in the production areas to improve the internal industry infrastructure and to increase existing possibilities. We try to optimize development of fields and oil production. A work plan has been prepared for next year.

In 2018, we plan construction of offshore platform No.1 for "Karabakh" field at "28 May" OGPD, pier platforms No. 331, 1541A at "Oil Rocks" field, fixed offshore platform No.12 at OGPD named after N.Narimanov, ground area No.1220 at "Pirallahi" field of “Absheronneft” OGPD. It is forecasted to conduct 4,370 technical and geological measures in 2018, which will create grounds for additional oil production of 298.9 thousand tons. Production of 113.9 thousand tons of additional oil is planned through injection and injection into formations of 3.386 mln cubic meters of water. Total oil production for 2018 is estimated at 6.2 mln tons, gas production 5.805 bln cum.

- What volume of oil and gas reserves currently estimated at the fields commissioned by "Azneft" PU?

- At present, there are 21 oil and gas fields in the Azerbaijani sector of the Caspian Sea, 25 onshore, totally 46 on the balance of the "Azneft" Production Union. As mentioned above, 28 of these fields are being developed, including 13 offshore and 15 onshore fields. Extractable residual oil and condensate reserves on developing fields makes 186.972 mln tons, gas reserves 134.764 billion cubic meters. Total volume of residual extractable hydrocarbon reserves in the fields under conservation and exploration makes 250 mln 495 thousand tons of oil and condensate, 186 bln 236 mln cum of gas.

- Last year, a Memorandum of Understanding was signed with Malaysian Petronas on exploration, development of the block which includes "Goshadash" structure in the Caspian Sea and production of hydrocarbons. What works are being carried out in this structure at present? When the exploration well planned to be drilled?

- Works in the area of "Goshadash" are commendable. Geology and Geophysics Department conducted seismic explorations on "Goshadash" area at internal expenses of SOCAR. The obtained information was processed and interpreted. Currently, local experts carry out assessment of the structure. After the evaluation, the exact date of drilling of exploration well will be known.

- A strategic development plan has been prepared in Azerbaijan regarding underground gas storage facilities. What is envisaged in this plan? What steps are being taken in accordance with the plan?

- It is planned to increase active storage capacity of storage facilities to 6 bln cum in stages. In this regard, SOCAR Oil and Gas Research and Design Institute is developing new projects. Works will be carried out in several directions to increase volume. Mainly, surface equipment will be replaced with higher pressure resistant equipment, a new compressor station will be constructed, new areas (tectonic blocks) will be involved in development, new wells will be drilled. Additional wells are being drilled at VII and VIIA horizons of the Garadagh Underground Gas Storage Facility for expanding the storage facility in this direction.

- What amount of gas has been pumped into the storage facilities since the start of the current gas pumping season? How much is the volume of active gas in the storage facilities? To what extent volume will be increased by the end of the season?

- The 2017 gas pumping season started in April of this year. According to information to September 12, volume of gas pumped into the underground gas storage facilities made 1 498,649 mln cum (Garadagh Underground Gas Storage Facility – 881,059 mln cum, Galmaz Underground Gas Storage Facility – 617,59 mln cum).

Currently, volume of active gas in the underground gas storage facilities together with the residual makes 2 286,696 mln cum (Garadagh Underground Gas Storage Facility – 1 227,609 mln cum, Galmaz Underground Gas Storage Facility – 1 059,087 mln cum).

By the end of 2017 gas pumping season, volume of active gas is forecasted to reach 3 billion cubic meters.