ExxonMobil, SOCAR ink agreement on payment compensation under two oil and gas projects
The State Oil Company of Azerbaijan (SOCAR) and ExxonMobil, a US company, have come to agreement and signed a document on payment of compensation for refusal from drilling exploration well on Nakhchivan and Zafar-Mashal fields, operated by the US company, the SOCAR told Trend.
ExxonMobil will have to pay $32m to the SOCAR for refusal from drilling the second exploration well on Zafar-Mashal field and $18m for refusal from similar operations on Nakhchivan field.
Baku office of ExxonMobil confirmed Trend the signing of the agreement on payment of compensation to the SOCAR.
ExxonMobil completed the drilling of the first well on Zafar-Mashal in 2004, while it failed to achieve commercial hydrocarbon reserves. The expenses for drilling the first exploration well on Zafar-Mashal, which continued around 11 months, amounted to $110m.
The drilling of the first well on Nakhcivan field with the Istiglal rig, which started on 22 August 2001, was ceased in February 2002. The initial project depth of the well was 6444 meters and the final - 6746 meters. As a result of drilling ExxonMobil also did not found commercial hydrocarbon reserves.