Baku, Azerbaijan, Sept. 28
By Maksim Tsurkov - Trend:
Greenfields Petroleum President John Harkins says his company will in the next two months get a new partner in a project of Bahar Energy Ltd. to develop an oil and gas block, which includes Bahar and Gum Deniz fields in the Caspian Sea's Azerbaijani sector.
Harkins made this announcement Sept. 28 addressing the 3rd Azerbaijan and Caspian Sea Oil and Gas Week in Baku.
He said the need in a new partner emerged after the Baghlan Group, which owns a 66.67-percent equity stake in the project of the Bahar Energy Ltd., announced bankruptcy.
The US-based Greenfields Petroleum itself owns a 33.3-percent stake in the Bahar Energy Ltd.
Harkins said that as of now Baghlan Group is in the process of liquidation, and given this, its stake will be transferred to another company.
He added that Greenfields Petroleum is currently consulting with Azerbaijan's state oil company SOCAR to determine who will be the new partner for the block's development.
The new partner, as Harkins said, will be announced in the next two months, that is, before late this year, and the transfer of shares will start after the new partner is approved by SOCAR.
He also said the new partner to develop the deposit will pay Greenfields Petroleum some $26 million - the amount the company has spent to cover Baghlan Group's share.
Previously, SOCAR signed a production sharing agreement (PSA) with Bahar Energy Ltd. for exploration, rehabilitation, development and extraction at the Bahar-Gum Deniz block.
The PSA's second part involves an exploration at the Bahar-2 structure.
Bahar Energy Ltd., according to initial estimates, will invest $1 billion for implementation of works under the PSA.
Bahar field, located 40 km southeast of Baku, the capital of Azerbaijan, has been developed since 1969.
Edited by CN
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