The State Oil Company of Azerbaijan (SOCAR) and the Russian Oil Company RussNeft will sign a Production Sharing Agreement (PSA) on the development of Azerbaijani onshore block of fields Hovsan-Zykh in Baku on 3 November, Trend reports.
Previously, a PSA contract for the development of fields Hovsan-Zykh had been concluded with Russian LUKOIL, who later, due to ecological issues, broke the contract.
The Zykh field, which has been developed since 1935, is 3.25 km long and 1.75 km wide. The depth of layers of this field in Apsheron Peninsula equals 1470-2800m. Hovsan field is located in the Hovsan settlement, 20 km east from Baku. The field is 6 km long, and 5 km wide. It consists of west and east sections, and has been exploited since 1947.
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 mln tons, its recoverable resources over 630 mln.tons. RussNeft has 30 production assets, 3 oil refineries, 1 transport enterprise and over 300 petrol stations.