Global Energy Azerbaijan Group (GEA) is the largest foreign onshore oil producer in Azerbaijan. Together with its minority interest partner, the State Oil Company of Azerbaijan Republic (SOCAR), GEA has been performing rehabilitation and development of 17 oil&gas fields on basis of the Production Sharing Agreements. 10 of them (Binagadi, Chakhnaglar, Girmyaki, Sulutepe, Siyanshor, Shabandagh, Fatman, Masazirr, Zigh and Hovsan) are located on the Absheron peninsula, and other 7 fields (Kelametdin, Mishovdagh, Kurovdagh, Neftchala, Khylli, Babazanan and Durovdagh as well as south-west slope of Mugan monocline) in the Kur Valley region in central Azerbaijan. Binagadi Oil Company, Absheron Operating Company Limited, Karasu Operating Company, Shirvan Operating Company Ltd., Neftechala Operating Company Ltd which enter GEA Group of Companies are the operators of the listed projects. Global Energy Azerbaijan is an affiliated company of GCM Global Energy, Pic, a privately-owned UK based company.
The PSA including the Zigh and Hovsan oil fields developed by the Absheron Operating Company Limited was signed with SOCAR in 2007. A high amount of high-rate wells with an average depth up to 3000m was drilled on fields throughout these years despite complicated geological conditions. Large-scale geological-technical operations are underway. Long-term plans of development of fields are worked out following the outcomes of 2D and 3D seismic surveys.
The Binagadi PSA which includes 8 oil fields that are developed by the Binagadi Oil Company was signed in 2004. According to the agreement, GEA has been engaged in recovering and developing the production infrastructure of one of Baku’s oldest oil fields, discovered in the 1890. Despite the long history of intensive development of mentioned fields, the company managed to stop progressing production decline rate and resume the operation of old fields. It was achieved owing to an experience and innovative technologies that are applied for secondary recovery of old fields.
The PSA including the Mishovdag and Kelametdin oil fields that are developed by the Karasu Operating Company was signed in 1999. In this project GEA continues to implement an aggressive drilling program, old wells rehabilitation program as well as undertakes measures for oil production intensification.
The PSA on the block that includes the Kyurovdag oil field and is developed by the Shirvan Operating Company Ltd was signed in 2009. GEA plans to increase the production at this field by up to three times over the next five years through implementation of both aggressive drilling and intensive water injection programs.
The PSA that includes Neftechala, Khilly, Durovdagh, Babazanan oil fields which are developed by the Neftechala Operating Company Ltd was signed in 2009. It has been the 5th project of GEA in Azerbaijan.
The GEA projects are implemented by foreign and local professionals with big experience in performance of oil and gas operations. Each of these professionals has higher education, strong intra-cultural skills and many years’ working experience in the oil and gas production industry. The group’s companies operating in Azerbaijan employ about 4,000 Azerbaijani specialists. Regular programs are implemented for improving their professional skills including retraining programs. Most of the workers are young specialists for whom GEA companies have become the first place of work. Following the principle of supremacy of the human life and health over the results of the economic activity of the company, GEA keeps regularly developing ongoing social and industrial safety programs for workers.
GEA is cooperating with the State Oil Company of the Republic of Azerbaijan to develop local market of equipment and service suppliers. This policy gives preference to local suppliers which are able to compete in both price and quality. Combining the policy of attracting the best local suppliers and application of international technologies, GEA intends to achieve its production goals with minimum expense by using the best industry practices.
The presence of the company favorably affected the environment at contract areas of all projects developed by the GEA companies. GEA is undertaking environmental measures enabling to minimize environmental impact, optimize processes of development of fields.
All operations meet the current environmental standards of the Azerbaijan Republic as well as best international industry practices. The overall picture of the condition of natural facilities is satisfactory. All production operations are carried out within production sites. Disturbed lands are re-cultivated and redeveloped after completion of operations. No anomalous figures on concentration of polluting substances have been fixed throughout the whole period of operation. All detected rates meet longstanding observations and background change of environmental objects. GEA attaches particular importance to utilization of drilling wastes.
Regular monitoring surveys enable to conduct an operating and independent control over the environmental compartments at all facilities of GEA, ensure early detection of possible negative impacts through integrated analysis of ecosystems, undertaking of environmental protection measures.
Departmental ecological monitoring is one of the main environmental activities held by GEA. The measures on quality control over atmosphere, surface and subsoil waters, soils and grounds, nuclear environment, flora and fauna facilities are undertaken within the framework of this activity.
GEA continues maintaining fruitful cooperation with the State Oil Company of the Republic of Azerbaijan to increase production while operating as a follower of high health, safety, environmental and ethical standards observance. GEA is committed in the long term to the continued success of the Azerbaijan oil industry and intends to work with its partner SOCAR to look for additional projects.
