About Relations between Natural Gas and Oil in Connection with Forecast of Their Reserves in Azerbaijan

Azerbaijan is one of the oldest oil and gas provinces, where more than 2 bln tons of oil have been extracted over more than a century. At present, the oil production is declining and mainly determined by production from the Azeri-Chirag-Guneshli offshore block (AChG). Compared to oil, the opportunities for further growing natural gas reserves and production are very promising. For the latest years, a number of large gas condensate fields have been discovered in the deep-water part of South Caspian Sea, such as Shakh-Deniz, Apsheron, Umid. There are a number of prospects that have not yet been drilled in this part of the sea basin. The paper assesses their prospectivity, substantiates the priority exploration targets and, on the basis of the statistical analysis of the quantitative gas/oil ratio data for many other Azerbaijanian and world basins, an attempt is made to assess the reserves in the prospects. The total recoverable oil reserves in Azerbaijan are estimated at 3.5 bln tons, of which slightly above 2 bln tons have already been extracted. Based on the statistically estimated ratio between the volumes of gas and oil in various basins of the world, including Azerbaijan, the total possible natural gas reserves in Azerbaijan are estimated at about 4 trillion m3 . This is in agreement with the other available estimates. Of this volume of natural gas, 0.85 trillion m3 has already been extracted, and the approved geological reserves are estimated at 2.55 trillion m3 . Almost 83% of the extracted natural gas belonged to offshore fields. This trend will continue in the future, and, moreover, will be strengthened due to large volumes of gas condensate accumulations in the deepwater part of the basin. In this part of the basin, the most attractive prospects are Mashal, Shafag, and Israfil Huseynov, total reserves of which are expected at 0.6 trillion m3 of natural gas.