Offshore oil and gas contract annulled in Azerbaijan
Azerbaijan, Baku, June 2 / Trend S. Aliyev /
Partners on development of oil and gas prospective structure Inam in Azerbaijani sector of the Caspian Sea cancelled contract of PSA type and ceased effect of the project, SOCAR high ranking representative (the State Oil Company of Azerbaijan) said. The representative was share holder of Inam.
No merchantable reserves of hydrocarbon were revealed as a result of exploration drilling at Inam.
"Contract on Inam was cancelled because there was insufficient (research) information to announce commercial reserves as a result of exploration operations," SOCAR high ranking representative said.
Share holders of Inam offshore prospective structure development are SOCAR - 50 percent, BP - 25 percent, Korean national oil corporation - 20 percent, RD/Shell - 5 percent. Drilling of the second exploration drill at Inam structure implemented in 2008 did not demonstrate commercial reserves of hydrocarbon. Well drilled in the depth of 5,350 meters was liquidated.
Two exploration wells must be drilled at this structure upon obligations of PSA contract. The first exploration well INX-1 with 5,025 project depth was drilled at this structure in 2001. But after accident the well was closed. It was credited as fulfillment of obligations. So, all exploration obligations of companies were fulfilled.
Well was drilled at contractual area that covers area of 225 square kilometers (140 kilometers to the south of Baku). Depth of water at contractual area changes from 45 meters in the north to 200 meters in the south. Minimal depth of Inam is 4 meters.
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