RWE Dea announces work progress on prospective structure in Azerbaijan

Baku, Azerbaijan, June 5

By Aygun Badalova - Trend:

RWE Dea AG continues working on prospective "Nakhchivan" structure in Azerbaijan, in terms of technical and commercial aspects, according to the company's general manager for new ventures in Europe and the CIS, Martin Wellens.

The German company's general manager made the remarks on June 5 at the 21st International Caspian Oil and Gas-2014 Conference held in Baku, Azerbaijan.

Earlier, it was reported that the talks on Production Sharing Agreement (PSA) for exploration and development of the Nakhchivan structure are planned to be completed in 2014.

"The company's main activity today includes reprocessing of seismic data and the study of geological composition. And we hope to complete all these works next year. The conditions are not favourable enough, and so we need to update the exploration model," Wellens said.

He added that the tentative data are not favourable enough, however the company believes that the Nakhchivan structure has potential and offers great opportunities in the long term.

Meanwhile, Azerbaijani State Oil Company (SOCAR) First Vice-President for Geology, Geophysics and Field Development, Khoshbakht Yusifzadeh recommended the company to accelerate the works on this field.

RWE and SOCAR signed a memorandum of understanding in March 2010 for Nakhchivan offshore structure.

The structure's reserves are forecasted to stand at 300 billion cubic meters of gas and 40 million tons of gas condensate.

The first contract for development of the Nakhchivan structure was signed on August 1, 1997. The project participants included ExxonMobil (50 percent) and SOCAR (50 percent). The contract was terminated due to the failure to discover commercially attractive hydrocarbons.

Edited by S.I.