Dan Ulduzu field explained

Dan Ulduzu
Country:Azerbaijan
Location:near Absheron peninsula
Offonshore:offshore
Operator:SOCAR
Partners:Amoco (30%),
SOCAR (20%),
Itochu (20%),
Unocal (25.5%),
Delta Oil Company (4.5%)
Discovery:1970s
Start Development:1997
Est Oil T:40
Est Gas Bcm:25
Formations:Upper Cretaceous

Dan Ulduzu field is an oil and gas field located 105km (65miles) 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 160m (530feet) – 180m (590feet).[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 on exploration.[6] The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in during the 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

External links

Notes and References

  1. News: 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 . 2010-06-28 . 2011-07-22 . https://web.archive.org/web/20110722142310/http://news.gazeta.kz/art.asp?aid=184534 . dead .
  2. News: AFR Azərbaycanla enerji sahəsində əməkdaşlığın intensivləşdirilməsinin tərəfdarıdır . Germany is interested in intensifying cooperation with Azerbaijan in the energy sector . Interfax Azerbaijan . 2007-05-22 . 2010-06-28 . dead . https://web.archive.org/web/20110706132323/http://www.interfax.az/az/index.php?option=com_content&task=view&id=5648&Itemid=9 . 2011-07-06 .
  3. News: Dan Ulduzu and Ashrafi. No longer in operation after April 1999 . . Betty Blair. Summer 1998. 2010-06-28.
  4. News: Fourth Oil Consortium Signed. Dan Ulduzu and Ashrafi Prospects . . Betty Blair. Winter 1996. 2010-06-28.
  5. Book: Huseynov, Vagif. Caspian oil. Economy and Geopolitics . 2002 . OLMA-PRESS . New York. 5-224-03880-4 . 52 . June 28, 2010.
  6. Web site: Нет худа без добра. "Ашрафи" нашло судьбу. Good things happen. Ashrafi found its destiny. 2010-06-28. dead. https://web.archive.org/web/20110706130822/http://www.kaspiy.az/articles.php?item_id=20050622110830889&sec_id=2. 2011-07-06.
  7. News: ОБСУЖДЕНЫ ВОПРОСЫ УЧАСТИЯ В МЕЖДУНАРОДНОЙ ВЫСТАВКЕ "НЕФТЬ И ГАЗ КАСПИЯ" . Issues related to Caspian Oil and Gas Expo are discussed . Vyshka . I. Mammedli. 2007-05-25 . 2010-06-28.
  8. News: Wintershall Azərbaycanın dəniz yatağında kəşfiyyat quyusu qaza bilər . Wintershall might start drilling in Azerbaijani oil field . . 2007-03-02 . 2010-06-28 . 2011-08-12 . https://web.archive.org/web/20110812030901/http://az.trend.az/capital/pengineering/892663.html . dead .
  9. Web site: Speech of Heydar Aliyev on PSA agreement with foreign investors. 2010-06-28. dead. https://web.archive.org/web/20110724235051/http://library.aliyev-heritage.org/az/6307863.html. 2011-07-24.
  10. News: ГНКАР приступит к освоению месторождений "Карабах" и "Ашрафи-дан улдузу" . SOCAR will start development of Karabakh and Ashrafi-Dan Ulduzu fields . . 2004-04-12 . 2010-06-28.
  11. News: Contract of the century, or a day longer than a century... . Region Plus . Nurlana Guliyeva . 2006-02-17 . 2010-06-28 . dead . https://web.archive.org/web/20110706130824/http://regionplus.az/en/articles/view/617 . 2011-07-06 .
  12. Web site: SOCAR. Oil Strategy of Azerbaijan: successes and perspectives. 2010-06-28. dead. https://web.archive.org/web/20080804080548/http://socar.az/1128-news-view-en.html. 2008-08-04.
  13. Web site: Caspian Drilling Company. Our Company . 2010-06-28.

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