Continuation of exploration of onshore oil fields can create opportunities of rising oil production in the country, ONA reports referring to a reliable source.
According to the source, the volume of onshore oil reserves in Azerbaijan is not as significant as offshore fields such as the Azeri-Chirag-Guneshli (ACG), but they can be a more stable source for increasing oil production.
Currently, the vast majority of liquid hydrocarbon production (oil and gas) is explored from offshore areas, particularly from the ACG block and the Shah Deniz field.
An example of the importance of onshore area development in the country is BP's acquisition of 61% of the contract for the development of the South-West Gobustan onshore oil field.
“BP is a company that works only on confident projects. This, of course, is not a big field like ACG, but the volume of costs is also quite different. This is an interesting project regarding diversification of the business. On the other hand, it is a good choice for increasing oil extraction at the expense of onshore fields, which does not require large investments in large-scale offshore projects”, stated the source.
Within the framework of the contract, BP will drill an exploration well to evaluate the potential prospective structure. Drilling of well is planned for the second half of 2019.