In 2021, the production of 1.62 million barrels of oil is forecasted from the Balakhani block
This is stated in the conclusion of the Accounts Chamber for the budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2021.
It should be noted that at present the Balakhani block is considered the largest among the onshore fields in Azerbaijan. This year, it is planned to produce over 4.4 thousand barrels of oil here every day.
According to the document, production of 1.58 million barrels of oil was projected from the field in 2020, up from 1.74 million barrels in 2019.
Let us remind you that the Balakhani-Sabunchi-Ramana oil and gas field is located 12 km north-east of Baku. The area occupied by the field is 10 km long and 3 km wide. This field was discovered in 1869 and has been in operation since 1871. There are 1,124 wells in the operating fund, and there are 328 inactive wells.
The field is being developed by the Balakhanineft Oil and Gas Production Department (SOCAR structure).
In 2010, SOCAR and the German company UGE-Lanser PTI signed a 25-year agreement on exploration, rehabilitation, development and production from the block, which includes the Balakhani, Sabunchi, Ramana and Kurdakhani fields.
The contract area is 16.14 sq. km. SOCAR’s share is 25%, and Lancer’s is 75%.