The State Oil Company of Azerbaijan (SOCAR) and the British company Caspian Energy Group came to an agreement to establish Shirvanoil Operating Company fro 1 January 2006, the SOCAR told Trend.
Shirvanoil OC will be established on the base of former Shirvanoil Joint Venture, which was involved in the rehabilitation, exploration and development of the Kurovdagh onshore field.
The acceptance work is nearing to completion, while after the property of the JV will be given to the balance of OC.
The SOCAR signed a PSA with the Caspian Energy Group (former Whitehall) on Kurovdagh in November 2004, where the sides hold 50% stake each. Shirvan Oil JV, where Caspian Energy Group retained 51% stake, had been involved in the rehabilitation of
Kurovdagh since 1997.
The development of Gurovdagh, which was opened in 1929, started in 1955. Production from the field has exceeded 36 million tons so far, including over 1.6 million tons of oil extracted by Shirvan Oil starting from 1997.
Maximal oil production dates to 1966, when daily production reached 40,000 barrels of oil against 4,000 barrels a day at the moment of establishment of Shirvan Oil JV.