Ashrafi field
From Wikipedia, the free encyclopedia
| Ashrafi | |
|---|---|
| Country | Azerbaijan |
| Location | near Absheron peninsula |
| Offshore/onshore | offshore |
| Operator | SOCAR |
| Partners | previously operated by North Absheron Operating Company (NAOC) consortium: 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 | 6 million tonnes (~ 7×106 m3 or 40 million bbl) |
| Estimated gas in place | 25×109 m3 (880×109 cu ft) |
Ashrafi 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]
Ownership
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 agreement, 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 to be 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 a barrel of oil was below $20.[6] Due to low energy prices, the bloc was not considered commercially viable and was thus abandoned.[7] On March 7, 2000, the contract for exploration ended and was not renewed by the consortium.[2]
The project was operated by North Absheron Operating Company (NAOC) which consisted of the operator Amoco (acquired by BP) (30%) and partners 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 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] In 2007, SOCAR signed a Memorandum of understanding with the German company Wintershall for exploration works at Ashrafi.[13] Currently, the drilling is being carried out by semi submersible drilling vessel Dede Qorqud of Caspian Drilling Company, contracted by SOCAR.[14][15]
