Azerbaijan, Baku / Trend corr. S.Aliyev / The State Oil Company of Azerbaijan (SOCAR) and French Total company have not agreed on exploration and development of the Apsheron marine block yet.
"The companies have quite different approach on the project," SOCAR reported.
The negotiations are still continued. As in many other contracts between SOCAR and foreign companies, Total is proposed to assume all expenditures. SOCAR will return the entire expenditures sum to the company when commercial hydrocarbon stocks to be revealed. However, the sum not returned to the company if no stocks to be found.
The term of the memorandum signed between SOCAR and Total on 8 February 2007 will expire in February 2008. The further negotiations between the companies depend on their positions. Within the framework of the memorandum with Total, SOCAR assumed not to hold negotiations with other companies on the project.
Before, the American Chevron Texaco company was functioning on the block. Total company also took part in the contract.
The contract was signed in August 1997. One well was drilled on the block. The companies saw the development inefficient and did not drill the second well. The contract was cancelled in 2005.