BP Spuds First Well at Azeri Shafag-Asiman Block
BP and Socar have begun drilling its first exploration well at Azerbaijan’s offshore Shafag-Asiman block, both companies have said in statements.
"We are excited and proud to be embarking on this first exploration well on Shafag-Asiman – a structure which has significant potential for a large-scale gas discovery,” BP regional president Gary Jones said on January 15. “A great deal of preparation has been made to assure a safe and robust drilling programme.”
BP has said before it is hoping to make a discovery at Shafag-Asiman comparable to its Shah Deniz project, Azerbaijan’s largest gas field and the source of supply for the Southern Gas Corridor.
According to Socar, Shafag-Asiman could hold 500bn m3 of gas and 65mn mt of condensate. BP has not disclosed resource estimates.
BP and Socar signed a production-sharing agreement (PSA) to develop Shafag-Asiman in 2010, with the contract entering into force the following year. BP serves as operator, although each partner has a 50% interest in the project.
The PSA runs for 30 years, with a five-year extension possible.
The Heydar Aliyev semi-submersible, owned by Socar subsidiary Caspian Drilling Co, plans to complete the Shafag-Asiman well within 12 months, to a depth of 7,000 metres, according to Socar.
The water depth at the site is 624 metres.
BP is Azerbaijan's top oil and gas investor. Alongside Shah Deniz, it also operates the country's top oil project Azeri-Chirag-Gunashli (ACG), as well as the network of pipelines that transport Azeri oil and gas to markets in Europe. Besides its work at Shafag-Asiman, the company is also exploring for oil and gas at Azerbaijan's offshore D-230 and Swap blocks.