Geology Reference
In-Depth Information
is necessary to provide an impartial evaluation of the Basin's hydrocarbon
potential, to determine its role, place and significance on the regional and
global scale and to optimize the exploration/appraisal process.
Chapter 1 provides a geological description of the South Caspian Basin.
The local structure inventory in the Productive Sequence (Red-Bed
Sequence) of the South Caspian Basin identified by various geologic, geo-
physical and drilling operations as of January 1, 2006, was 531, which
included 274 offshore and 257 onshore. Of those, 206 have been under
appraisal (offshore 86, onshore 120). One hundred and thirteen (113)
fields have been discovered and 42 prospects yielded hydrocarbon flows
of various intensity (including offshore 41 fields and 25 prospects; and
onshore, respectively, 72 and 17). As of the same date, the appraisal cov-
erage and success rate offshore were 0.314 and 0.477; onshore 0.467 and
0.600; and for the Basin as a whole 0.388 and 0.548. The total number of
unexplored structures in the region is 325 (61.2%), including offshore 188
(68.6%) and onshore 137 (53.3%). For individual countries in the Basin,
appraisal coverage ratios are: offshore, Azerbaijan 0.456, Turkmenistan
0.173, Iran 0.100; onshore, respectively, 0.930, 0.468, and 0.042. These fig-
ures show that in the South Caspian Basin as a whole, the offshore area
is least studied, and that is exactly where, with all other conditions equal,
the greatest probability of new oil, gas and condensate field discoveries
exists.
From approximately 1850 to 2006, about 2.63 BT of hydrocarbons
(oil equivalent) were produced from the Productive Sequence (Red-Bed
Sequence) of the region. This amount includes 1.87 BT of oil, 40.4 MMT
of condensate, and 719.19 BCM of free and oil (“associated”) gas. (These
numbers relate to Azerbaijan and Turkmenistan; there is no production in
the Iranian part of the Basin).
The states owning parts of the South Caspian Basin (Azerbaijan,
Turkmenistan, Iran and their national oil companies and international oil
and gas corporations) are planning to unfold in the region in the near and
middle term an oil and gas producing industry on a world scale. As early as
in 2010, annual oil production in Azerbaijan is anticipated at 50-55 MMT,
gas 30 BCM; in Turkmenistan, 48 MMT and 20 BCM. For Iran, provided
the reserves are approved, the potential production level (based on the
annual average for the country as a whole of about 1.2-1.4% of recoverable
reserves) may reach (in our estimate) 10 MMT and 9 BCM. Total for the
basin may be about 120 MMT and 60 BCM annually (Table 11.4).
Implementation of the stated production levels assumes availability
and preparedness of the real raw materials base. This in turn requires
objective estimation of proved reserves (Russian categories А+В+С
1
and
