RWE announces deadlines of negotiations on project in Azerbaijan
Baku, Azerbaijan, Nov. 12
By Aygun Badalova - Trend: The German RWE Dea AG plans to complete negotiations on the Production Sharing Agreement (PSA) for the exploration and development of the prospective Nakhchivan structure in Azerbaijan in 2014, RWE Dea AG general manager for new ventures in Europe and the CIS, Martin Wellens said on Nov. 12 in Baku.
In March 2010, the State Oil Company of Azerbaijan Republic and RWE signed a memorandum of understanding on the perspective Nakhchivan structure.
The structure's reserves are forecasted at 300 billion cubic meters of gas and 40 million tons of 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.
In 2011, French company Total announced the discovery of a large gas field on Absheron structure. According to preliminary estimates, the reserves amount to 350 billion cubic meters of gas and 45 million tons of condensate.
The field was opened on the structure on which a contract has already been concluded that was subsequently liquidated. According to the experts' estimates the opening of the Absheron field showed the perspectives of opening fields at structures, contracts on which were later closed.