The State Oil Company of Azerbaijan (SOCAR) and Russian company Russneft concluded the coordination of technical terms and major commercial principles under the perspectives of conclusion of a PSA on development of Hovsani-Zykh onshore field, Trend reports.
SOCAR informed that at present a text of PSA is under development. The coordination of the document will more probably end by the end of the year.
Russia`s RussNeft is ready to take ecological problems solution within the joint development of the onshore bloc of fields Hovsan-Zikh upon itself
Earlier, the contract of the PSA (Production Haring Agreement) type on the development of the onshore fields Hovsan-Zikh was signed with the other Russia`s company LUkoil. Later, the both parties cancelled the agreement.
The depth of the productive beds of the field on the Absheron Peninsula reaches 1.470-2.800 meters. The field was put into operation in 1935. RussNeft OJSC was established in September 2002. Today, the annual oil production of the above-mentioned company exceeds 17 m. tons, its mineable resources over 630 m. tons. RussNeft has 30 production assets, 3 oil refineries, 1 transport enterprise, and over 300 petrol stations.