Traditional fields on Azerbaijani territory are where the Company produces the majority of its oil. The two unique and six largest fields account for a sizeable portion of the current oil production. According to the conditions of the Contract, since the beginning of the production program, additional oil output has reached 180.2 thousand tons. Two cattle crews have made a total of 63 repairs at 40 wells, mostly from the inactive fund and the fund that is pending physical liquidation. Since the introduction of GNO, 32 wells have been constructed, 26 of which are currently producing an additional up to 104 tons per day per day.

All wells have been outfitted and mechanized by the Azerbaijani branch of Gunashli Oilfield. Work has been done on telemechanization and dispatching with real-time information output to the control room. A PPD system site with 2 injection wells and 2 pits on 5 responding wells has been launched in a periodic manner. The Company works to maintain the ecosystem’s balance and expand its position in the business by maximizing the potential of its oil reserves, collected expertise, and capabilities.

The percentage of high-margin products produced has increased by 4.5% over the past three years as a result of efforts to raise the efficiency of oil and gas production. Operating cost optimization in 2019 was 1.7 billion rubles, exceeding the budget by 14% as a result of regulatory actions, the SAGD development process optimization, and extensive well maintenance process optimization.

The most successful geological and technical procedures were put into place in 2019, resulting in a 33% rise in net discounted income per investment ruble compared to the same period in 2017. In order to search for deposits, in addition to standard technologies, such as seismic exploration, the Company uses a number of new ones:

• forecasting of oil-prospective objects by artificial intelligence;
• identification of promising objects by the method of field geophysics and geochemistry using the complex probability parameter (CPV) of oil prospects;
• geochemical method of searching for oil and gas deposits using passive adsorption of hydrocarbons;
• low-frequency seismic sounding – NSZ;
• GTO VM (geological and geophysical technology for optimizing the choice of drilling location;
• EMZ (electromagnetic sensing);
• a new set of programs for processing 3D seismic survey materials «Stratimegic»;
• the method of NMR tomographic sounding was tested for the first time to detect layers saturated with ultra-viscous oils at shallow depths).

Rich oil and gas deposits are among the precious resources that can be found in the earth’s deep depths. A lot of deposits near to the earth’s surface have already been exploited, and some are soon to run out of resources. Because of this, it’s essential to find deposits in deep levels and prepare them for use in the industrial process (drilling of wells, etc.). Along with years of effort, this also costs a lot of money. Energy production starts with exploration, which includes looking for hydrocarbons and creating deposits.

Well drilling was the traditional method of searching, but geophysical research techniques have taken its place (magnetic, gravimetric, electric, seismic, radioactivity). This enables significant time and financial savings for intelligence search operations. Gravimetric or electrical approaches are used to identify magnetic deep oil or gas reserves before accurate seismic surveys are conducted in a potentially more advantageous location. Explosions or ground impact devices are used to produce elastic waves for seismic research. An area’s structural makeup can be partially determined by waves that are reflected from the earth’s sublayers at a depth of 5 to 10 km.