Production to slightly decrease at Kurovdag oil field next year

In 2024, 1.04 million barrels of oil are projected to be extracted from the Kurovdag field, reads the Opinion of the Chamber of Account of Azerbaijan on the budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2024, Report informs.

According to SOFAZ, the forecast for 2023 is 1.05 million barrels of oil, which is 0.01 million barrels, or 0.95%, more than the forecast for 2024.

In 2022, this figure was 1.04 million barrels, the same as the forecast for 2024.

The Kurovdag field is located 120 km southwest of Baku and is part of the Lower Kura oil and gas region. The field has been operated by a joint venture (Shirvanoil) since September 1, 1997, and by Shirvan Operating Company Limited since October 5, 2009.

A PSA-type contract signed in late 2004 between the State Oil Company of Azerbaijan (SOCAR) and the British Caspian Energy Group for the rehabilitation, production, and distribution of the onshore Kurovdag block in Azerbaijan was terminated in March 2008. Although the Azerbaijani parliament passed the document, Caspian Energy Group did not fulfill some of its pre-contractual obligations, and some terms of the PSA contract did not satisfy the company.

The parties agreed to terminate the PSA contract and continue work on a parity basis within the terms of the Shirvanoil joint venture, which previously operated the field.

The contract area is 115 sq. km. From the beginning of the operation to April 1, 2011, 1,153 wells were drilled in the field.

The central part of the field is complicated by many mud volcanoes, which bring gas and oil to the surface. Exploration well No. 2 of the first central field, discovered in the Kurovdag oil field, was put into operation on June 18, 1955, with 31 tons of oil from the first horizon of the Productive Layer. After that, production wells were drilled at an accelerated pace in the central part.

Later, the oil content of the north-western and south-eastern parts of the field was discovered.