SOCAR expects positive results from Umid Field

If the results of drilling the first exploration well on the prospective Umid Field are positive, the State Oil Company of the Azerbaijan Republic (SOCAR) will start drilling a second inclined well next year, SOCAR Vice President Khoshbakht Yusifzade told Trend today.

The well depth has reached 5,500 of a designed 6,500 meters, he said. A casing string was loaded into the well and drilling will restart in several days. Work on the well could finish by late 2010.

SOCAR is conducting exploratory drilling on the structure at its own expense. The company has built a platform to facilitate the drilling processes. Yusifzade noted the benefit of building and using drilling platforms as opposed to utilizing floating drilling rigs. The company used new, existing blocks to construct the platform.

"The cost of drilling from a floating installation would be about $200 million," he said. "This will cost around $60-$70 million."

If drilling is successful, SOCAR will have a ready platform and can drill up to six wells. Yusifzade expressed confidence that the exploratory drilling will be positive.

This is the first exploratory drilling that SOCAR has held independently in the past 15 years. Umid's reserves are estimated at 200 billion cubic meters of gas and 30 million tons of condensate. Umid is one of the promising structures in Azerbaijan, through which SOCAR plans to increase its own gas reserves.


/Trend/