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.
Under this agreement, associated natural gas not used for petroleum operations shall be made available to SOCAR free of charge at the delivery point.
Contractor shall have the right to produce hydrocarbon liquids found within the Contract Area and to process associated natural gas produced with any such liquids in order to extract such liquids for sale, provided that such processing can be conducted in a manner that is economically justified for contractor. Liquids saved and sold shall be treated as crude oil.
In the event contractor decides to develop non-associated natural gas from the Contract Area, contractor shall provide to SOCAR a written notice about such decision and then SOCAR and contractor shall conduct exclusive negotiations for the duration of 12 months from the date of such notice to agree to terms of development and production of such non-associated natural gas. Such terms shall ensure an acceptable profitable outcome for the contractor parties.
Contractor shall have the right to flare or vent the applicable amount of associated natural gas in the event of emergencies, equipment malfunctions, repairs or maintenance of any facilities, including delivery systems, or SOCAR’s failure to take delivery of associated natural gas to be delivered to it by contractor.
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