Bahar oilfield
Encyclopedia
Bahar is an offshore oil and gas field
in the Caspian Sea
, located 40 km (24.9 mi) southeast of Baku
, Azerbaijan
.
The field has been discovered in 1968 and was developed since 1969. Bahar has produced a little over 16.8 million tonnes of oil
and 128.7 billion cubic meters of gas
up until 2010. There had been up to 93 wells operating in the field during the peak of production, however the number has since decreased to 16.
New PSA
On December 22, 2009, State Oil Company of Azerbaijan Republic and an Emirati company Bahar Energy Ltd signed a production sharing agreement for exploration, rehabilitation and development of Bahar and Gum Deniz
fields. The deal was sealed by the President of SOCAR, Rovnag Abdullayev
and General Director of Bahar Energy Ltd, Richard McDougall and is projected to last 25 years with possibility for extension of 5 more years.
This is the 28th agreement SOCAR signs with a foreign investor on the basis of production sharing. Rovnag Abdullayev emphasized that SOCAR is planning on increase the overall gas production of Azerbaijan
to 1 trillion cm.
According to the agreement, within the next 3 years, Bahar Energy Ltd will drill one exploration well. The first stage of the project includes drilling of 50 wells. In addition to that, all existing wells will be rehabilitated for production. It is estimated that the first stage of the project will bring nearly $2.5 billion to SOCAR. Second stage of the project consists of exploration of Bahar-2 structure within the Bahar field.
As per the agreement SOCAR is to receive bonus of $2 million as soon as the project program is confirmed, $1 million for every 100 million barrels, $5 million once the commercial production starts and $2 million after increase of production capacity by 1.5 times from 2008 production indicators, as planned. In 2008, the field produced 54-55,000 tonnes of oil and 195 million cm of gas.
Bahar Energy Ltd owns 80% of the stake while SOCAR is entitled to 20%. Forecasts have previously indicated that in 5 years, gas and condensate production in Bahar field would decrease by 15% and 10%, respectively which led to the idea of attracting foreign investment for stabilization of production. It is expected that Bahar Energy Ltd will invest nearly $1 billion in the project.
Productive Series. The reservoir rocks have porosities of 13-18% and permeabilities of 45-250 mD. Biomarker geochemical analyses of onshore and offshroe fields indicate that the Pliocene oil and gas fields in South Caspian Basin had been mainly charged from epigenetic hydrocarbons.
Oil and gas field
An oil and gas field is a field, or vast reservoir, that contains both oil and natural gas.-See also:* Oil field* Natural gas field* Oil reservoir* List of oil fields* List of natural gas fields...
in the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
, located 40 km (24.9 mi) southeast of Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
, Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
.
The field has been discovered in 1968 and was developed since 1969. Bahar has produced a little over 16.8 million tonnes of oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and 128.7 billion cubic meters of gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
up until 2010. There had been up to 93 wells operating in the field during the peak of production, however the number has since decreased to 16.
New PSAProduction sharing agreementProduction sharing agreements are a common type of contract signed between a government and a resource extraction company concerning how much of the resource extracted from the country each will receive....
agreement
On December 22, 2009, State Oil Company of Azerbaijan Republic and an Emirati company Bahar Energy Ltd signed a production sharing agreement for exploration, rehabilitation and development of Bahar and Gum DenizGum Deniz oilfield
Gum Deniz is an offshore oil and gas field in the Caspian Sea, located southeast of Baku, Azerbaijan.The field has been in operation since 1955. Gum Deniz has produced approximately 28.9 million tonnes of oil and 27 billion cubic meters of gas to date. In March 2009, Azerbaijan drilled its last...
fields. The deal was sealed by the President of SOCAR, Rovnag Abdullayev
Rovnag Abdullayev
Rovnag Ibrahim oglu Abdullayev is the director of the SOCAR oil company and has been president of the Association of Football Federations of Azerbaijan since 2008...
and General Director of Bahar Energy Ltd, Richard McDougall and is projected to last 25 years with possibility for extension of 5 more years.
This is the 28th agreement SOCAR signs with a foreign investor on the basis of production sharing. Rovnag Abdullayev emphasized that SOCAR is planning on increase the overall gas production of Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
to 1 trillion cm.
According to the agreement, within the next 3 years, Bahar Energy Ltd will drill one exploration well. The first stage of the project includes drilling of 50 wells. In addition to that, all existing wells will be rehabilitated for production. It is estimated that the first stage of the project will bring nearly $2.5 billion to SOCAR. Second stage of the project consists of exploration of Bahar-2 structure within the Bahar field.
As per the agreement SOCAR is to receive bonus of $2 million as soon as the project program is confirmed, $1 million for every 100 million barrels, $5 million once the commercial production starts and $2 million after increase of production capacity by 1.5 times from 2008 production indicators, as planned. In 2008, the field produced 54-55,000 tonnes of oil and 195 million cm of gas.
Bahar Energy Ltd owns 80% of the stake while SOCAR is entitled to 20%. Forecasts have previously indicated that in 5 years, gas and condensate production in Bahar field would decrease by 15% and 10%, respectively which led to the idea of attracting foreign investment for stabilization of production. It is expected that Bahar Energy Ltd will invest nearly $1 billion in the project.
Reservoir
It is estimated that Bahar field holds 2.7 million tonnes of oil and between 18.4 and 25 billion cubic meters of gas reserves. It contains oil and gas condensate in sandstones and sandy siltstones which belong to PliocenePliocene
The Pliocene Epoch is the period in the geologic timescale that extends from 5.332 million to 2.588 million years before present. It is the second and youngest epoch of the Neogene Period in the Cenozoic Era. The Pliocene follows the Miocene Epoch and is followed by the Pleistocene Epoch...
Productive Series. The reservoir rocks have porosities of 13-18% and permeabilities of 45-250 mD. Biomarker geochemical analyses of onshore and offshroe fields indicate that the Pliocene oil and gas fields in South Caspian Basin had been mainly charged from epigenetic hydrocarbons.
See also
- Gum Deniz oilfieldGum Deniz oilfieldGum Deniz is an offshore oil and gas field in the Caspian Sea, located southeast of Baku, Azerbaijan.The field has been in operation since 1955. Gum Deniz has produced approximately 28.9 million tonnes of oil and 27 billion cubic meters of gas to date. In March 2009, Azerbaijan drilled its last...
- Azeri-Chirag-GuneshliAzeri-Chirag-GuneshliAzeri–Chirag–Guneshli is a large complex of oil fields in the Caspian Sea, about off the coast of Azerbaijan. An overall estimated area of the field is . It is operated by a BP-led consortium. The ACG fields have estimated recoverable reserves of about of petroleum...
- Baku–Tbilisi–Ceyhan pipeline
- Sangachal TerminalSangachal TerminalThe Sangachal Terminal is an industrial complex consisting of a natural gas processing plant and oil production plant, located on the coast of the Caspian Sea south of Baku, Azerbaijan.-History:...
- Baku-Supsa pipelineBaku-Supsa PipelineThe Baku–Supsa Pipeline is an long oil pipeline, which runs from the Sangachal Terminal near Baku to the Supsa terminal in Georgia. It transports oil from the Azeri-Chirag-Guneshli field. The pipeline is operated by BP.-History:The preparations for the pipeline's construction started in 1994...
- Nabucco pipelineNabucco PipelineThe Nabucco pipeline is a proposed natural gas pipeline from Erzurum in Turkey to Baumgarten an der March in Austria diversifying natural gas suppliers and delivery routes for Europe. The pipeline attempts to lessen European dependence on Russian energy...
- Baku-Novo Filya gas pipeline