Memorandum On Mutual Understanding on the development of Azerbaijani offshore bloc, Absheron has been signed between the State Oil Company of Azerbaijan (SOCAR) and French oil giant Total in Baku today, a source in SOCAR informed Trend.
According to the conditions of the memorandum signed, the parties are to agree the terms of the agreement and PAS contract within 12 months (one year). The project on the development of the above-mentioned offshore bloc was suspended. The parties to the previous Absheron Project was ChevronTexaco of USA (the operator) - 30%, SOCAR - 50%, and Total - 20%.The contract was signed in August, 1997, and then ratified in the very year.
1 well was drilled on the bloc. The parties to the project acknowledged the further development of the bloc inefficient and rejected to drill another well by paying a compensation to SOCAR. The contract was canceled in 2005. According to the source in SOCAR, presently, the Azerbaijani party holds negotiations on the other projects which were previously acknowledged as inefficient for the further development.