Azerbaijan and Germany to Sign Energy Co-operation Memorandum by End of Year

Politics Materials 28 September 2007 17:58 (UTC +04:00)
Azerbaijan and   Germany to Sign Energy Co-operation Memorandum by End of Year

Azerbaijan, Baku /corr. Trend S.Agayeva / The Second Secretary of Azerbaijan's Embassy to Germany, Nasimi Agayev, reported to Trend from Berlin on 28 September that a Memorandum of Energy Security Co-operation is expected to be signed between Azerbaijan and Germany by the end of the year.

"The work on the project of the Memorandum is completing and it will be signed during the visit of the German Government's delegation to Azerbaijan," he said.

"The German side has enough concrete interests in co-operating with Azerbaijan in diversifying the energy resources and the first step in this regard was the Azerbaijani-German energy co-operation forum which took place in Baku," the Secretary said.

It was initiated during the forum to sign a document regulating this co-operation. It will be similar with the documents signed with the USA and European Union.

The German oil companies intend to expand their co-operation in Azerbaijan. The German company Wintershall signed a Memorandum of Understanding with the State Oil Company of Azerbaijan (SOCAR) on the development of the offshore field Ashrafi and received geological data on the field from the SOCAR, SOCAR President, Rovnak Abdullayev, briefed the media on 27 September.

According to him, if the German company makes a positive decision whilst studying the data, commercial talks maybe held with it.

The German company intends to drill a well on the field to specify the hydrocarbon reserves. It will be made after signing a PSA. According to the initial data, the reserves of the field are estimated at 35-40mln tons of oil and 20-25bln cu.m of gas.

The contract on development of Ashrafi-Dan-Ulduzu fields was signed on 14 December 1996. the participants to the project were: BP-30%, Unocal - 25,5%, Itochu - 20%, Delta Hess - 4.5%, SOCAR - - 20%. The contract was ceased.