Azerbaijan, Baku, Oct. 8 / Trend E.Ismayilov /
The State Oil Company of the Azerbaijan Republic (SOCAR) will continue negotiations with Germany's RWE on commercial, legal and technical issues in the framework of the memorandum of understanding signed between the parties on the prospective structure of Nakhchivan, a senior official at SOCAR said.
"At this stage, we are holding business, legal and technical talks," the official said.
Under a Memorandum of Understanding on the perspective offshore structure Nakhchivan signed between the two companies on March 10, 2010, the company must undertake all necessary work to prepare the PSA within one year.
If the work to prepare the new contract is not finished before the expiry of the memorandum, this period may be extended, he said. These are commercial negotiations, he said, and they do not aim to complete the work in strict terms. "Without limiting any of our partners or ourselves, we are free to continue this work," the official added.
The structure's reserves are projected at $300 billion cubic meters of gas and 40 million tons of gas condensate.
The first contract on the development of the perspective offshore structure of Nakhchivan was signed on 1 Aug. 1997. The parties to the contract were ExxonMobil - 50%, SOCAR - 50%. The project was closed due to failure to discover commercially attractive volumes of hydrocarbons.
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