Dövlət Mineral Xammal Ehtiyatlarından İstifadə Agentliyi

Geological Examination

According to Article 30, Chapter IV, of the Law of the Republic of Azerbaijan "On Subsoil", as well as the "Procedure for conducting state geological examination of geological information and mineral resources on subsoil areas put into operation", approved by Decree No. 102 of the President of the Republic of Azerbaijan dated 13 February 1999, State Geological Examination is conducted to ensure protection of the country's mineral resource base, efficient and sustainable use of natural resources, to satisfy the demand for raw materials, as well as to establish a set of regulations on the allocation of land plots for mining activities, state registration of subsoil areas and associated work, geological study and use of subsoil, allocation of suitable areas for the construction of underground facilities. Explored mineral deposits, mineral deposits in operation as well the construction of underground facilities are subject to State Geological Examination.

Requirements for State geological examination of discovered mineral deposits:
Mining, technical, hydrogeological, engineering-geological and other conditions of exploitation of mines. Information on quantity, quality, mode of occurrence, content and other properties of minerals, quantity, form and dimensions of the ore mass, quantity of main and auxiliary components, presence and characteristics of toxic impurities
Information on potential consumers of the main and additional products that can be obtained after the discovery and operation of a field, and on economic viability considering adverse environmental impacts of production and processing
Information on the presence of other minerals that can be potentially produced and used, presence of valuable components, associated rocks to be produced during field operation, their suitability for industrial use (e.g.., construction and other material)
Technological study of minerals, alignment of scientific and methodological level of assessment of their technological features with the modern level of processing of similar mineral raw materials and accepted indicators of feasibility studies and conditioning projects

Requirements for state geological examination of oil and gas sites:
Material required for pre-calculation of oil and gas reserves by field or individual wells
The following materials must be prepared to study: lithological separation and correlation of sections by modern research methods; detection of oil, gas and aqueous layers , detection of oil and gas saturation of reservoirs, as well as porosity, permeability, clay content, etc.
In order to predict the productivity of collectors at study stage, the formations along the section should first be determined using different well data for the field
Use of data on the formations to be studied, physicochemical properties and (most importantly) petrophysical parameters of rocks in these intervals, as well as logging data
All material studied, evaluated and used in field development, including for the calculation and re-evaluation of reserves from a technological point of view
Feasibility study of oil and gas condensate recovery factors

Requirements for state geological examination of mineral deposits in operation:
Geological data for the field, data on the quantity and quality of reserves, losses, depletion, data on the main and secondary components in the process of production and processing, results of operational activities
Exploration data for the fields in operation, compliance of indicators on production and processing waste disposal, economic indicators of production and processing (cost, profit, etc.)
Information on the condition for the calculation of reserves, indicating the main and alternative options, and the impact of each option on the economic performance of the field development
Determination and calculation of all indicators of reserves (quantity of components, thickness, volume, correction factor, etc.) by category and type of mineral reserves
Information on nature and resource protection measures, purpose, organization and implementation methods, expected costs and efficiency

Requirements for state geological examination of information on subsoil areas that are not associated with operation of mineral deposits and are suitable for use:
Site geological data site, information on geographical and economic position of the site and conditions of use (operation)
Purpose of the facility to be located in the subsoil area for waste disposal, main indicators, expected commissioning and operation periods
Results of the assessment of waterproofing reliability of subsoil areas intended for burial of radioactive and highly toxic waste that cannot be treated and of rocks used for solid waste disposal

Note: In accordance with the current legislation, it is important to follow the below procedure to, discover an area as a mineral deposit complete its state registration and put it up for auction
* After an area where mineral reserves are located is registered in the Geological Information Fund (Form No. 3gk) the Agency assigns it the status of geological allotment for geological study;
* Design and estimate documentation related to the work to be carried out is submitted to the Agency for approval;
* AfterUpon approval of the design and estimate documentation is approved, the reserves are calculated in accordance with requirements and criteria of geological and economic evaluation based on the results of geological work carried out in the area depending on the type of mineral and nature of the deposit;
* Once the Agency completes state geological examination of the calculated reserves (upon the geological examination by a foreign company or expert) documentation is submitted to the Commission on Mineral Resources for State registration and approval;
The mineral deposit registered by the State is put up for auction for further operation (if there is a, demand);

Geological examination is based on the following principles:

Obligation to implement the expert project precedes the decision to implement it
Reliability and completeness of the information submitted for geological examination
Scientific validity and objectivity of the results of geological examination
Independence of geological examination specialists in exercising their powers