PARLIAMENT OF AZERBAIJAN GETS READY FOR RATIFICATION OF NEW OIL CONTRACT
The State Oil Company of Azerbaijan (SOCAR) submitted the contract for development and rehabilitation of the on-shore field вЂњSurahaniвЂќ, signed on 16 August 2005 between SOCAR and Dubai Rafi Oil for ratification to the Milli Mejlis (Parliament) of Azerbaijan.
The Milli Mejlis special commission supposes to ratify the contract the next week, SOCAR told Trend. Under the contract Rafi Oil owns 70 %, SOCAR вЂ" 25%.
The вЂњSurahaniвЂќ oil and gas field was discovered in 1904. From the moment of its discovery up to the present time 114,5 million tons of oil and over 10 billion cubic meters gas were produced there. The maximal production from the field was recorded in 1931, when 4,189 million tons of oil was extracted.
The residual extracted reserves of the field are 6,822 million tons of oil. The potentially extracted reserves are 94%. 492 wells are currently operating on the contract area, from which 234 are production wells. The volume of investments in the project is $400 million.
Rafi Oil is committed under the contract to increase the production 1,5 times during 2 years. The contract has been concluded for 25 years and after the effective day Rafi Oil is to pay off the bonus of $1 million to the government of Azerbaijan.