• Introduction
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• Group production & reserves

Arawak Energy

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Case Studies

• Innovative thinking, decisive action

Oil production in Azerbaijan has quadrupled since 1997 to approximately one million bopd in 2010 from major worldscale fields both onshore and offshore such as Tengiz, Karachaganak, Azeri Chirag Guneshli and Kashagan.

Asset	Arawak interest (%)	Gross acreage (sq km)	Operator	E	D	P
Coastal Block	80	349	Arawak
Central Block	80	145	Arawak
Northern Block	80	110	Arawak
Key E = Exploration / D = Development / P = Production

With proven oil reserves estimated at seven billion barrels, Azerbaijan is considered one of the few non-OPEC producers capable of substantially increasing output in the coming years.

Despite a history of oil production dating back to 1846, it was the government's adoption of the PSA structure in 1994 that has been instrumental in attracting significant investment for petroleum development and transportation infrastructure. Azerbaijan has three major oil export routes, the Soviet era 1,336-km Baku-to-Novorossiysk, Russia pipeline; the so-called “early oil pipeline” running 837-km from Baku to Supsa, Georgia; and the 1,768-km Baku-Tbilisi-Ceyhan (BTC) line from the offshore platforms in the Caspian Sea to the Mediterranean port of Ceyhan in Turkey via Georgia. Gas is mainly handled through the South Caucasus pipeline from the Shah Deniz field through Georgia to the Turkish border.

From 1998 until April 2010, Arawak Energy held a 37.17% non-operated interest in Commonwealth Gobustan Limited (CGL), a joint-venture company holding an 80% stake in the Exploration, Development and Production Sharing Agreement (EDPSA) covering the South West Gobustan oil and gas fields. In April 2010, Arawak Energy took over operatorship of CGL and now owns100% of the company.

The South West Gobustan EDPSA consists of three separate onshore blocks – Coastal, Central and Northern – covering a total area of 600 sq km, located about 50 km from Baku. The hydrocarbon reservoirs in this area are of many different ages and range in depth from 250 metres to 4,500 metres. The main zones are Pliocene sands as well as sandstones of the Oligocene and Miocene. Discontinuous sandstones of the Paleocene and Eocene may also be hydrocarbon bearing, with additional potential in Cretaceous and Jurassic limestones.

Since Arawak took over operatorship of CGL, we have completed three workovers, resulting in a threefold increase in production. In 2011, we plan to drill two oil and two gas development wells and to complete four oil and 10 gas workovers. A 2D seismic acquisition programme began in late 2010.