SOCAR, BEOC ink memorandum of co-op on Bahar, Gum-Deniz fields

SOCAR's Complex Drilling Works Trust (CDWT) and Bahar Energy Operating Company (BEOC) have signed a memorandum of cooperation, Report informs referring to the CDWT.

The document establishes a partnership between the two companies.

The memorandum will explore the potential of applying CDWT's extensive drilling and technical experience to the Bahar and Gum-Deniz fields located in the Azerbaijani sector of the Caspian Sea.

The projects, which will be jointly implemented with BEOC, will significantly contribute to achieving the strategic goals of both companies.

SOCAR and Bahar Energy Limited signed a production sharing agreement on December 22, 2009, for exploration, rehabilitation, development, and production at the Bahar and Gum-Deniz field block. According to the agreement, Bahar Energy Limited holds an 80% stake in the project, while SOCAR holds a 20% stake.

The contract is for 25 years, with an option for a five-year extension. The investment program is initially estimated at $1 billion, and all investments will be carried out by Bahar Energy Limited. Remaining gas reserves in the contract block are estimated at 25 billion cubic meters.

The Gum-Deniz oil field was commissioned in 1955 and is located 21 km southeast of Baku. Development of the Bahar gas field began in 1969.