Dan Ulduzu field

Dan Ulduzu
Country Azerbaijan
Location near Absheron peninsula
Offshore/onshore offshore
Operator SOCAR
Partners Amoco (30%),
SOCAR (20%),
Itochu (20%),
Unocal (25.5%),
Delta Oil Company (4.5%)
Field history
Discovery 1970s
Start of development 1997
Production
Estimated oil in place 40 million tonnes
(~ 10×106 m3 or 70 MMbbl)
Estimated gas in place 25×109 m3 (880×109 cu ft)
Producing formations Upper Cretaceous

Dan Ulduzu field is an oil and gas field located 105 km (65 mi) northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago.[1][2] In Azerbaijani, Dan Ulduzu means Pole Star.

Dan Ulduzu-Ashrafi bloc

The Production sharing agreement (PSA) for exploration, development and production between SOCAR and NAOC consortium for Dan-Ulduzu-Ashrafi bloc was signed on December 14, 1996. The contract area is 453 km2.[3] The water depth on location is 160 metres (520 ft) - 180 metres (590 ft).[1] According to the contract, 3 exploration wells would be drilled and if successful, the production would start in 2003 with an intended output to reach 7 million tons per year by 2007. Azerbaijan would also have been paid $75 million in bonuses. Total capital investment was estimated at $2.5 billion.[4] After drilling of 3 exploration wells, 2 million tons of oil was discovered at Dan Ulduzu and 6 million tons was found at Ashrafi field in January 1998.[5] During the exploration stage, in 1998-2001, the price for barrel of oil was below $20.[6] Due to low prices, the bloc was not considered commercially viable.[7] On March 7, 2000 the contract for exploration ended and was not renewed by the consortium.[2]

Ownership

The project was operated by North Absheron Operating Company (NAOC) which consisted of the operator Amoco (acquired by BP) (30%), SOCAR (20%), Itochu (20%), Unocal (25.5%), Delta Oil Company (4.5%).[8] The company had spent a total of $64.5 million for exploration.[6] The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in in mid-1990s.[9]

Drilling renewed

In early 2004, SOCAR confirmed plans to revitalize the project at Dan Ulduzu and Ashrafi fields in 2007.[10] SOCAR intends to drill 19 wells by 2015 which will require an investment of 2.76 billion Azerbaijani manats.[11][12] Currently, the drilling is being carried out by Caspian Drilling Company, contracted for various projects by SOCAR.[13]

See also

References

  1. ↑ 1.0 1.1 "Подписание новых нефтяных контрактов в рамках нефтегазовой выставки Caspian Oil&Gas-2004 не планируется - президент ГНКАР" [Signing of any contracts during Caspian Oil&Gas-2004 is not being planned - President of SOCAR]. Kazakhstan Today. 2004-05-12. Retrieved 2010-06-28.
  2. ↑ 2.0 2.1 "AFR Azərbaycanla enerji sahəsində əməkdaşlığın intensivləşdirilməsinin tərəfdarıdır" [Germany is interested in intensifying cooperation with Azerbaijan in the energy sector]. Interfax Azerbaijan. 2007-05-22. Retrieved 2010-06-28.
  3. ↑ Betty Blair (Summer 1998). "Dan Ulduzu and Ashrafi. No longer in operation after April 1999". Azerbaijan International. Retrieved 2010-06-28.
  4. ↑ Betty Blair (Winter 1996). "Fourth Oil Consortium Signed. Dan Ulduzu and Ashrafi Prospects". Azerbaijan International. Retrieved 2010-06-28.
  5. ↑ Huseynov, Vagif (2002). Caspian oil. Economy and Geopolitics. New York: OLMA-PRESS. p. 52. ISBN 5-224-03880-4. Retrieved June 28, 2010.
  6. ↑ 6.0 6.1 "Нет худа без добра. "Ашрафи" нашло судьбу" [Good things happen. Ashrafi found its destiny]. Retrieved 2010-06-28.
  7. ↑ I. Mammedli (2007-05-25). "ОБСУЖДЕНЫ ВОПРОСЫ УЧАСТИЯ В МЕЖДУНАРОДНОЙ ВЫСТАВКЕ "НЕФТЬ И ГАЗ КАСПИЯ"" [Issues related to Caspian Oil and Gas Expo are discussed]. Vyshka. Retrieved 2010-06-28.
  8. ↑ "Wintershall Azərbaycanın dəniz yatağında kəşfiyyat quyusu qaza bilər" [Wintershall might start drilling in Azerbaijani oil field]. Trend News Agency. 2007-03-02. Retrieved 2010-06-28.
  9. ↑ "Speech of Heydar Aliyev on PSA agreement with foreign investors". Retrieved 2010-06-28.
  10. ↑ "ГНКАР приступит к освоению месторождений "Карабах" и "Ашрафи-дан улдузу"" [SOCAR will start development of Karabakh and Ashrafi-Dan Ulduzu fields]. Day.az. 2004-04-12. Retrieved 2010-06-28.
  11. ↑ Nurlana Guliyeva (2006-02-17). "Contract of the century, or a day longer than a century...". Region Plus. Retrieved 2010-06-28.
  12. ↑ "SOCAR. Oil Strategy of Azerbaijan: successes and perspectives". Retrieved 2010-06-28.
  13. ↑ "Caspian Drilling Company. Our Company". Retrieved 2010-06-28.

External links