ExxonMobil is continuing to work in the project on the full-scale development of fields Azeri-Chiragh-Gunshli (ACG), as well as exports oil the Company receives from the contracted area, Exxon Mobil's Baku Office told Trend today. Exxon Mobil's share in ACG project is 8%. The oil that belongs to ExxonMobil in ACG project is carried by railway in the direction to the Georgian Port of Batumi and via pipeline Baku-Tbilisi-Supsa. In 2004, ExxonMobil reached an agreement with Azerbaijan's Azpetrol on carrying its oil from ACG by railway to the Georgian Port of Batumi.
The Company defined that announcement regarding office close up concerns only Nakhchivan and Zafar-Mashal projects.
In Nakhchivan project, Exxon Mobil's share was 50% (other 50% belonged to SOCAR). The first well was drilled in Nakhchivan field, by Istiglal rig, which was started on August 22, 2001, was interrupted in February, 2002. The projected depth of the well was 6,444 meters, its final depth 6,746 meters. As results of the drilling works, ExxonMobil did not find any commercial resources of hydrocarbons there.
In Zafar-Mashal project, the Company had 30% of the share holding. The other share holdings were distributed among Conoco 20%, and SOCAR -50%. ExxonMobil completed drilling the first well on Zafar-Mashal in 2004. In result of the drilling work, the Company did not find any commercial resources of hydrocarbons there as well. The expenses on drilling the first exploratory well on area Zadar-Mashal had been carried out for 11 months, exceeded $110 mln.
SOCAR (State Oil Company of Azerbaijan) and ExxonMobil came to an agreement and signed it by paying compensations for the denial to drill second exploratory wells on perspective areas Nakhchivan and Zafar-Mashal. The Company paid $32 mln. to SOCAR for the denial to drill the second exploratory well on area Zafar-Mashal, and $18 mln for the denial to carry out corresponding works on Nakhchivan.
Since the moment oil and gas operations were launched in the country (1995) and till the end of 2005, ExxonMobil invested about $3 bln. into the economy of Azerbaijan . The investments, particularly, include expenses on drilling exploratory wells in the projects where ExxonMobil works as an operator, its participation in the development of ACG, carrying out seismic and exploratory works, appraising an impact on the environment at carrying out different works on the contract areas, as well as tax payments.
Project Oghuz where ExxonMobil had also participated, was closed at the end of 2003 due to commercial unattractiveness of the further development. Project Savalan, where ExxonMobile is a shareholder, is not developed at all, since the area is located on the disputed Caspian area with Iran, where 20% of the share holding are still vacant. Moreover, the Company is participating in project Araz- Alov- Sharg where it has 15% of the share holding.