Block of fields in Neftchala fail to fulfill production forecast

In 2020, the annual production of the Neftchala and Khilli oil fields was 0.16 million barrels against the forecast of 0.21 million barrels, said the Chamber of Accounts, Report informs.

According to the document, the production forecast for these fields was fulfilled by 76.08%.

The actual transfers from these fields amounted to $ 161,790, or 4.93% more than projected ($ 154.2 thousand).

The failure to fulfill the oil production forecast is due to the pandemic, the suspension of drilling because of falling hydrocarbon prices on the world market, and the restriction of oil production in accordance with the OPEC + agreement.

Agreement on Rehabilitation, Development and Production Sharing of the Neftchala, Durovdagh-Babazanan Oil Fields in the Republic of Azerbaijan, as well as the block, which includes the south-western slope of the Mugan Monocline, was signed among the State Oil Company of Azerbaijan (SOCAR), the Azerbaijani company Global Energy, and the Joint Oil Company of SOCAR. The operator is Neftechala Operating Company. The agreement entered into force on October 5, 2009, and its area is 2,707.7 km2.

The Durovdagh field is located in the Shirvan lowland, on the left bank of the Kura River. The Neftchala field was involved in industrial development in 1931, the Khilli field in 1954, and the Durovdagh field in 1978.