Page 16 - FSUOGM Week 06 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Caspian Sunrise struggles with

loss-making domestic sales

KAZAKHSTAN KAZAKHSTAN-BASED Caspian Sunrise is appeal against the $32mn of historic costs lev-
struggling, as it is having sell a large share of its ied entirely against MJF, despite the fact that the
Caspian Sunrise posted crude on the domestic market for only $6 per structure accounts for only 1% of the total BNG
a 7.7% growth in barrel, the London-listed company said on Feb- contract area.
output last year. ruary 5. “We look forward to the case being consid-
Obtaining export permits for oil is often a ered by the Kazakh authorities later this month,”
slow and arduous process for junior producers in Caspian Sunrise said. “In the meantime, we pre-
Kazakhstan, where the government tries to keep pare to pay the next quarterly payment.”
some oil supply back for the domestic refining The company pointed to recent progress at its
industry. These permits are sometimes granted deep BNG wells, even though none have yielded
on a well-by-well basis. commercial quantities of oil yet. Further work
Caspian Sunrise posted a 7.7% growth in out- has been undertaken to clear the A8 deep well to
put last year at its flagship BNG assets to 1,500 allow production from an interval 4,343-4,490
barrels per day (bpd). But although Brent is now metres deep, it said. This has led to limited gas
selling at $59 per barrel, the company has to sell and oil shows but not at commercial levels.
40-45% of crude domestically, currently for only “Our intention is to fracture and complete the
$6 per barrel, representing its lowest price in 12 well at the current 4,500-metre depth, which we
months. It is losing money on these sales. expect will take two months,” Caspian Sunrise
The company noted that there was an said. “In the event this does not result in com-
increase in the proportion of output it could mercial quantities of oil, we plan to drill a further
export in February, however. 800 metres to the original Devonian target at a
The BNG asset includes the shallow MJF depth of 5,300 metres.”
structure, which is already in production, and Work at its A5 deep well to remove stuck
deeper zones that Caspian Sunrise is test-flow- pipes was paused while drill pipes were in use at
ing. The deeper drilling needed to target these deep well A8, but has resumed recently. Caspian
zones is costlier, but the rewards are potentially Sunrise will look to drill a further sidetrack from
much greater. a 4,500-metre depth if the stuck pipes cannot be
Caspian Sunrise said it was continuing to removed. ™

P16 www. NEWSBASE .com Week 06 10•February•2021