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SOCAR: Illegal constructions hamper onshore oil fields development in Azerbaijan

Oil&Gas Materials 7 October 2011 11:19 (UTC +04:00)

Azerbaijan, Baku, Oct.7 / Trend, E. Ismayilov /

Illegal buildings constructed by citizens in the territory of oil fields and lands owned by the State Oil Company of Azerbaijan (SOCAR) are hampering the full development of oil reserves in these areas, SOCAR head Rovnag Abdullayev told journalists on Wednesday.

"At present, SOCAR activities are directed at preventing new buildings that are constructed in a very short time. SOCAR will not dismantle the old buildings and houses of citizens who have documents," Abdullayev said.

He said SOCAR will not dismantle the old buildings without a court decision.

"Along with the limitation of SOCAR's activity in a number of onshore fields, the illegal settlement of citizens in these areas also affects the implementation of PSA-contracts," Abdullayev said.

As an example, Abdullayev referred to the area within the contract of Binagadi oil operating company. About 70 percent of this is area currently occupied by illegal constructions and thus the company cannot fulfill the obligations of its contract, which is, in particular, to increase oil production.

"In addition, having houses in the areas which are under development can adversely affect the health of citizens," Abdullayev said.

Illegal houses and buildings, which will be built in the areas envisaged for oil production, will be dismantled, Abdullayev said.

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