FOREIGN INVESTORS DECLINED DEVELOPING вЂњPIRALLAHIвЂќ OIL FIELD
After studies conducted a number of foreign companies refused from the project on rehabilitation and development of the of the off-shore oil-field вЂњPirallahiвЂќ, which is currently operated by the State Oil Company of Azerbaijan (SOCAR).
Various companies during a lengthy period of time studied the projectвЂ™s feasibility, SOCAR told Trend. вЂњHowever, later on, due to the inefficiency denied itвЂќ, SOCAR pointed out.
From January to August SOCAR produced on its fields about 6 million tons of oil, exporting 1 3 million tons. In August production was 761,200 tons, export вЂ" 308,100 tons.
В"One cannot say the interest of foreign companies dropped. It exists mainly only within the framework of the on-shore fields development prospect. The point is many companies do not possess a practical experience in operating on off-shore fields and large investments are needed here than for on-shore fieldsвЂќ, SOCAR noted.
One of the reasons for the off-shore projects expensiveness is construction of hydro-technical facilities and pipelines. В"The extracted reserves from fields must be very attractive, and one ton oil production cost be low, SOCAR said.