BAKU, Azerbaijan, April 6. Azerbaijan’s state oil company SOCAR and GL International LLC have inked a Risk Service Agreement related to rehabilitation and development of the block including the Buzovna-Mashtaga, Gala and Zyra oil fields in the country, Trend reports.
The profit petroleum sharing is as follows:
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Contractor shall calculate SOCAR’s and contractor’s entitlement shares of total production in accordance with the Entitlement Calculation. Title and possession of Cost Recovery Petroleum and Contractor’s share of Profit Petroleum shall be transferred to Contractor at the Delivery Points.
The balance of total production remaining after the delivery for SOCAR of compensatory crude oil and after deducting cost recovery petroleum (profit petroleum) shall be shared between SOCAR and contractor as follows:
- In any calendar quarter during the interim period prior to and including the minimum obligatory work program, contractor shall not be entitled as part of the contractor fee to any percentage of profit petroleum.
- In each calendar quarter following the calendar quarter during the interim period in which SOCAR approves the minimum obligatory work program, contractor shall be entitled as part of the contractor fee to a percentage of profit petroleum. Such profit petroleum shall be calculated on a calendar quarter basis and shall be share between SOCAR and contractor based on the net back value of crude oil for each calendar quarter.
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