Azerbaijan signs new oil and gas contract (PHOTO)
Azerbaijan, Baku, Oct.7/ Trend E. Ismailov /
The State Oil Company of Azerbaijan (SOCAR) and the British BP today signed a PSA for exploration and development of promising structures "Shafag" and "Asiman" in the Azerbaijani sector of the Caspian Sea.
The contract was signed for 30 years. Exploration period will be four years, with possibility of extension for three years. Two wells are planned to be drilled within the first phase. Two more wells will be drilled if necessary within the second one.
In the operational period the sides will implement joint operatorship within the project. Share participation in the contract is expected on the scheme 50 to 50 percent.
Stocks of the structure are estimated at 300 -500 billion cubic meters of gas.
"Shafag" and "Asiman" structures are located 125 kilometers to the south-east of Baku. SOCAR and BP signed a memorandum on "Mutual understanding" on the joint exploration and development of "Shafag" and "Asiman" in London in July 2009. The date of signing of the contract expires in July this year.
Exploration work has not been conducted on the block before. It is located in the depth of 650-800 m. with the depth of the reservoir at 7,000 meters.
BP is the main foreign oil investor in Azerbaijan. It heads the projects to develop the block of oil and gas fields "Azeri-Chirag-Guneshli" and gas condensate field Shah Deniz. BP is also an operator of the Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines.