Period of validity of the memorandum on understanding signed between the State Oil Company of Azerbaijan (SOCAR) and HongKong Oil & Gas LTD over the project on rehabilitation and development of the oldest on-shore field Bibi-Eybat will not be extended. It has expired in late January this year, SOCAR told Trend.
As SOCAR noted, the State Oil Company has its own plans related to this field. В"SOCAR is likely to implement them on their own, without foreign investments involvement, SOCAR said. Other investors were also interested in implementation of this project, the company noted.
Memorandum on understanding stipulated coordination of principal commercial projects and other project conditions. Such work has not been done. HongKong Oil & Gas intended to improve the Bibi-Eybat site and to establish a modern park. Oil production was supposed to be carried out in parallel without damaging the environment.
The operating stock of the Bibi-Eybatneft Oil and Gas Producing Unit was 600 units for 1 February 2006.