Dashgin Iskenderov: Production cost in 'Azneft' PU among lowests in the world

Baku. 22 January. REPORT.AZ/ In 2017, "Oil Rocks" OGPD has produced 1 mln tonnes of oil, which is a record for recent decades.

Report informs, says the statement by the State Oil Company of Azerbaijan Republic (SOCAR).

It was noted that the current potential of promising oil and gas areas and fields on SOCAR allows to keep oil production stable in the coming years and increase gas production: "As a result of the measures taken to prevent production decline in the previously exploited old fields in the current phase, production on SOCAR continuously being carried out within the frameworks significant for regulation of the world oil market and agreed with other producers, also, taking full benefit from recovery ratio of oilfields achieved. In addition to drilling of new wells for stabilization of production, old wells are also restored and put into operational fund, stability of recovery ratio is kept, exploitation restoration projects are implemented through overhaul and geological and technical measures in inactive wells. In many of the abandoned wells, residual oil is extracted through the application of efficient technologies".

According to company, SOCAR experts have even managed to increase production on separate fields by applying the mentioned methods in the old fields. Thus, last year, "Absheronneft" OGPD and Bibiheybatneft OGPD on the "Azneft" Production Union (PU) increased production by 8.7% and 1.9%, respectively, compared to the previous year.

Dashgin Iskenderov, Director General of "Azneft" PU, explained factors influencing increase in production in the fields that, if to consider only fields of "Absheron" OGPD, total production there in recent years grew more by 2.5-fold: "Moreover, we managed to achieve these successes at low material costs. Thus, cost of production on "Azneft" PU is among the lowests in the world today, namely, efficiency of our operations is quite high. Undoubtedly, this is the fruit of the skill and determination of Azerbaijani oilmen".

SOCAR also mentioned that production cut deal by OPEC+ countries to stabilize oil price in the world market has been extended by the end of 2018. Azerbaijan completely fulfills its commitments to limit production within that framework. Increase in oil prices in exchange for slight limitation in production had a positive impact on SOCAR revenues.