The State Oil Company of Azerbaijan (SOCAR) announced that since the early September a new contact of PSA type for rehabilitation and development of the block of the on-shore oil and gas fields “Binagadi” entered into force.
The “Binagadi” block comprises such areas as “Binagadi”, “Girmaki”, “Chahnaglar”, “Sulu-tepe” “Masazyr”, “Fatmayi” “Shabandar” and “Siyanshor”.
The 25-year contract’s effective date is the 1 September 2005, SOCAR told Trend. В"The sides fulfilled all pre-contract conditions. Ratification of the document at the country’s Parliament was held, the main assets were transferred from balance to balance,relevant guarantees were received and so on”, SOCAR pointed out.
In the contract on “Binagadi” 25% is owned by the State Oil Company of Azerbaijan, 75% -by Azen Oil Co. The partners are the Azerbaijani Azpetrol and the Turkish Enka companies.
Azen Oil will invest for SOCAR. During the project operation Azen Oil is to pay off to Azerbaijan a bonus of $1 million and increase the oil production 1,5 times during the three years on the areas. The entire associated gas will be delivered to SOCAR free of charge.
Geological reserves of oil on the fields are 132 million tons. The extracted reserves are 12,8 million tons of oil. 3600 drilled wells are located currently on the fields. 595 units are production wells, 2280 вЂ" non operational. 286 tons of oil is produced currently on the block. Watering of oil fields is 89%. The contract area is 4.300 hectares.