The Shirvanoil Joint Venture (JV), conducting rehabilitation, exploration and development of the Azerbaijan on-shore Kyurovdag field is getting ready for drilling of the new exploration well, the Azerbaijan State Oil Company (SOCAR) told Trend. Drilling works will be performed by the British Service Company Monument Oilin the southern part of Kyurovdag.
The JV is currently under the final stage for passing to PSA (Production Sharing) agreement. The start of drilling is expected after its accomplishment.
Shirvanoil invested over $40 million till late 2005 in Kyurovdag development. SOCAR and the British Caspian Energy Group came to accord that Shirvanoil Operating Company will be set up since 1 January 2006 РіРѕРґР° based on Shirvanoil JV.
In November 2004 SOCAR signed a PSA contract with Caspian Energy Group (former Whitehall) on "Рљyurovdag. The parties to PSA received per 50% share. Since 1997 Shirvanoil JV was engaged in rehabilitation of "Kyurovdag, in which the Caspian Energy Group owned 51% of share.
The Kyurovdag field was opened in 1929, its development started in 1955. For today over 36 million tons of oil have been extracted, while over 1,6 million tons fell on Shirvan Oil (since 1997).