Caspian Energy Group needs to fulfill some commitments for PSA contract coming into effect
The PSA (Production Sharing Agreement) type contract signed in autumn 2004 between the Caspian Energy Group (former Whitehall) and the State Oil Company of Azerbaijan (SOCAR) for rehabilitation, prospecting and development of the Azerbaijan on-shore field "Рљyurovdag", has not come into effect yet. For the document to become effective the foreign partner, the Caspian Energy Group is to fulfill some pre-contract commitments, SOCAR told Trend.
According to the SOCAR spokesman, the foreign participant has not fulfilled all necessary requirements so far. After the PSA contract coming into force the operating company is to be set up.
The Shirvan Oil Joint Venture (JV) was engaged in rehabilitation of Kyurovdag since 1997, where the Caspian Energy Group owned 51% shares. The "Рљyurovdag oil field has been discovered in 1929. Over 36 million tons of oil have been extracted for today, and the Shirvan Oil JV produced over 1,6 million tons since 1997.