The source noted that oil production in the field fell by 5.1 percent, while gas production increased by 0.5 percent as compared to the third quarter of 2017.
"The average daily oil production stood at 739.5 barrels, while gas output totaled around 557,100 cubic meters in 2017. The primary factors contributing to lower than forecast production volumes were: (i) the slower pace of executing scheduled workovers, reflecting, in part, limited access to heavy lift vessels; (ii) lower than expected post-workover production rates; and (iii) the slow pace of south Gum Deniz electric submersible pumps ("ESPs") installations due to old wellbores requiring more extensive work than originally expected," said the source.
During the fourth quarter 2017, operating expenses were 7 percent below budget and capital expenditures were also significantly under budget as result of capital projects being reduced in scope or delayed until the technical work was completed and a revised plan of development is formulated, said the source.
"During the fourth quarter 2017, Bahar Energy Operating Company Limited completed seven capital and thirteen service workovers in Gum Deniz. In the Bahar Gas Field, one capital workover was completed and two remain underway. A number of construction projects continued, including platform refurbishments, causeway structure reinforcement and processing facility improvements," noted the source.
The contract for exploration, rehabilitation, development and production at Bahar and Gum Deniz block of offshore fields was signed by Azerbaijan’s state oil company SOCAR (20 percent) and Bahar Energy (80 percent) in 2009. Bahar field, developed since 1969, is located in 40 kilometers south-east from Baku.
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