SOCAR to submit new PSA contract to Azerbaijani Parliament
Azerbaijan, Baku, Nov.14 / Trend, E. Ismayilov /
The State Oil Company of Azerbaijan (SOCAR) prepares to submit a PSA contract for exploration and development of prospective structures "Shafag" and "Asiman" for approval by the Azerbaijan Parliament, SOCAR head Rovnag Abdullayev said on Saturday. The contract was signed between SOCAR and British BP in October this year.
"The contract has already been prepared and will be submitted to the Parliament," Abdullayev said.
He said currently preparation is underway to start works under the contract.
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.
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.