SOCAR and Foreign Company do not Reach Agreement on Joint Development of rospective Azerbaijani Oil and Gas Structures

Oil&Gas Materials 19 February 2008 19:18 (UTC +04:00)

Azerbaijan, Baku. 19 February / cor. Trend V. Sharifov/ The State Oil Company of Azerbaijan and the German company Wintershall did not reach an agreement on the joint development of the prospective Azerbaijani structure Ashrafi.

"Wintershall did not consider the Ashrafi structure attractive enough," a source at SOCAR said on 19 February. The intial estimations of reserves of the Ashrafi field are 35-40mln tons of oil and 20-25bln cu.m. of gas.

SOCAR and Wintershall held talks on the basis of a memorandum signed at the beginning of 2007. The source said that the memorndum expired in February and the company does not see any need to extend it.

Wintershall earlier stated that it considers the development of Ashrafi structure not profitable if not united with the other prospective strucrure Karabagh. However, SOCAR did not accept the proposal of Wintershall and said that it plans to develop it itself and to unite it with another square.