Socar to Boost Oil Production by 10%

3 June 2009 (Last Updated June 3rd, 2009 18:30)

Socar, the state-owned oil company of the Azerbaijan Republic, is planning to raise its oil production by about 10% to 366 million barrels of oil by the end of 2009. The company will boost oil production from $36bn in investments from oil production contracts, along with $21m for the of

Socar, the state-owned oil company of the Azerbaijan Republic, is planning to raise its oil production by about 10% to 366 million barrels of oil by the end of 2009.

The company will boost oil production from $36bn in investments from oil production contracts, along with $21m for the offshore Azeri-Chirag-Gunashli field.

BP Azerbaijan, the operator at the ACG field, said that the production had exceeded one billion barrels of the Azeri light crude blend.

Socar has announced tenders in February 2009 for its eighth delivery through the Baku-Tbilisi-Ceyhan pipeline for one million barrels of oil for April 2009 delivery. More than half of the oil produced from ACG flows through the BTC pipeline.

ACG production for 2008, however, was 668,500bpd, down 900,000bpd compared to 2007.

The production announcement follows renewed interest in the oil and gas production from Caspian providers.