Oil production increases at Binagadi onshore block in Azerbaijan

In 2020, actual production at the Binagadi onshore block of oil fields was 0.99 million barrels compared to the forecast of 0.93 million barrels, reads the conclusion of the Accounts Chamber on the execution of the budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2020, Report informs.

Thus, the production forecast at these fields was fulfilled by 106.6 percent.

Proceeds from the Binagadi field amounted to $3.658 million (114.92 percent) against the forecast of $1.702 million.

The increase in payments to SOFAZ compared with the presented forecast is associated with an increase in oil prices at the end of 2020.

The Binagadi oil and gas area is located northwest of the Absheron Peninsula. On September 29, 2004, the State Oil Company of Azerbaijan (SOCAR) and Azen Oil Company B.V. signed a joint development agreement.

The contract area is 43.5 square kilometers. The Binagadi field has been in operation since 1896. It is located 9 kilometers north of Baku. The field has been operated by Binagadi Oil Company and by Azen Oil Company B.V. (Global Energy) since 2005.