(Caspian Sea) - Eurasia Energy Ltd. has signed TRACS International Consultancy Ltd. as its petroleum engineering consultants.
TRACS will work with Eurasia Energy to assist in the preparation of a rehabilitation, development, and exploration plan for the company's 600 sq km oil and gas block in the Republic of Azerbaijan.
The block is located in the shallow coastal waters of the Azerbaijan sector of the Caspian Sea approximately 70 km south of Baku.
This plan will form the basis of the terms of a future exploration, rehabilitation, development and production sharing agreement between the company and the State Oil Co. of the Azerbaijan Republic (SOCAR).
The TRACS technical team will begin their assessment of this data by the end of February 2006.
The block includes the producing Alat-Deniz oil and gas field and a string of seven prospective exploration structures (Hamamdag-Deniz, Garasu, Sangi-Mugan, Ulfat, Aran-Deniz, Dashly and Sabayil) trending in a south-easterly direction from the coast to 70 km offshore.
Water depths are predominantly up to 20 m and reach a maximum of 50 m at the far end of the block.
The Alat-Deniz field was discovered in 1983 and to date has produced approximately 12.5 MMbbl of oil and 1 bcm of gas.
SOCAR estimates recent production to be approximately 750 b/d of oil and 100,000 cbm/d of gas from 14 wells, and remaining recoverable reserves from the Alat-Deniz field of 15 MMbbl of oil and 1 bcm of gas.
The main producing horizon is at 3,700-4,500 m depth.
Available data includes low density Soviet-era seismic over the entire block and well data from the Alat-Deniz field and several other structures.
In addition there is modern seismic and well data in onshore and offshore areas proximal to the block that may be used for interpolation.
Notable offshore projects in Azerbaijan include the Azeri-Chirag-Guneshli field estimated to hold reserves in excess of 5 Bbbl of oil, and the Shah Deniz field estimated to contain more than 400 bcm of gas.
Both fields are being developed by consortia headed by BP and include other major international companies including SOCAR, Exxon, Unocal, Devon Energy, Amerada Hess, TPAO, Statoil, Lukoil and Itochu.
Oil and gas will be delivered to world markets by the Baku-Tbilisi-Ceyhan export oil pipeline to the port of Ceyhan on Turkey's Mediterranean coast, and the South Caucasus Gas Pipeline to Turkey.
In total 17 projects are at various stages of development onshore and offshore Azerbaijan, involving 27 foreign companies from 13 countries.