...

Foreign Company, SOCAR Cancelled PSA on Azerbaijan’s Oil Field

Oil&Gas Materials 31 March 2008 14:55 (UTC +04:00)

Azerbaijan, Baku, 31 March / Trend corr V. Sharifov/ The State Oil Company of Azerbaijan (SOCAR) and the British Caspian Energy Group, on mutual consent, cancelled the PSA on restoration, development and production sharing of the block included in Azerbaijan's Kurovdag onshore oil field, SOCAR reported on 31 March.

The PSA was signed at the end of 2004, and was supposed take concrete form after the ratifications at the Azerbaijani Parliament and after implementation of a range of pre-contract obligations by the sides to the agreement.

The Parliament ratified the document, but the Caspian Energy Group delayed implementation of several pre-contract obligations. Moreover, several terms in the PSA did not suit the company.

"The sides agreed to cancel the PSA and to continue the work in the field on parity basis through their joint venture Shirvanoil," SOCAR representative said.

In 2007, Shirvanoil JV produced in the contracted area 215,000 tons of oil, which is 7% less than in 2006. The Kurovdag field was opened in 1929 and its development was commenced in 1955.

Latest

Latest