SOCAR probable to yield part of his share in Anshad Petrol
The State Oil Company of Azerbaijan (SOCAR) expects from foreign companies reasonable proposals under the perspectives of compromising its share in the Neftchala, Khilly and Babazanan fields development projects. The SOCAR said that the issue on transition of Anshad joint venture (JV) to a PSA contract is still on agenda, while some details of such perspectives depends on financing.
Oil and gas production under PSA is certainly more efficient than the work of a JV. Now partners in Anshad Petrol JV carry out investment and programs under the development of fields, while the economic efficient of the project if developed through PSA would be more effective, a SOCAR source told Trend.
Anshad Petrol JV was set up in 1993 between SOCAR and the Turkish Atilla Dogan Petrol based on the former Oil and Gas Producing Unit (OGPU) Neftechalaneft. In 1994-1996, Atilla Dogan Petrol was an operator of Anshad Petrol JV, but since 1997 SOCAR overtook the function. In 1995 the Malaysian Land and General Berhad company became the projects participant, having bought 17.15% from Atilla Dogan Petrols share.
Anshad Petrol extracts gas on the wells from the contract area Neftechala, Khilli and Babzanan. The JV commenced its first sales of gas in April 2004 in the volume of 2 million cu m. SOCAR buys gas from Anshad Petrol and sells to Azerigaz JSC, which in its turn distributes the fuel through Aztransgaz Production Association, part of Azerigaz.