A group of companies led by BP Exploration Operating Co. Ltd. has signed an agreement with State Oil Company of the Azerbaijan Republic (Socar) that will lead to exploration of Shah Deniz prospect in the Caspian Sea.
The prospect, formerly known as Shak Deniz, lies in 100-500 m of water. It has been unsuccessfully tested by two wells drilled under the Soviet regime.
BP said resource estimates are 1.5-3 billion bbl of oil and 2-4 tcf of gas.
A production sharing contract (PSC) calls for 3 years of exploration budgeted at $100-150 million. Exploration will include acquisition of 3D seismic data and drilling of two wells during a 3 year period with an optional third well in the fourth year.
Shah Deniz lies southwest of the Guneshli-Chirag-Azeri development project under way by another BP group. The Shah Deniz deal was delayed pending progress with the earlier project (OGJ, Jan. 30, 1995, p. 31).
Partners under the new Shah Deniz PSC are BP 25.5%, Den norske stats oljeselskap AS 25.5%, Socar 10%, Turkish Petroleum 9%, Lukoil 10%, Elf Aquitaine SA 10%, and Oil Industries' Engineering & Construction 10%.
Elf is expected to sign a PSC with Socar for Lenkoran Deniz prospect, also in the Azeri Caspian Sea region. Details are not available.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
