SOCAR Considers Possibilities for Conclusion of New Contracts on Field Development

Oil&Gas Materials 27 December 2006 12:37 (UTC +04:00)

Vagif Aliyev, the Head of SOCAR Foreign Investments Department, informed Trend that the Babek and Umid fields in the Azerbaijani section of the Caspian Sea are of interests of some companies such as Total, LUKoil and Р'Р . At present different proposals are under consideration, whereas the State Oil Company of Azerbaijan (SOCAR) itself can carry out work over the projects.

At present Azerbaijan is attracting the interested companies.

The issue on conclusion of a contract is not under discussion now, said Mr. Aliyev.

It might be a contract which would differ from those signed in Azerbaijan in the form of Production Sharing Agreement (PSA).

Now we are considering other forms of contracts. Though no resolution has been taken yet, we are considering their application in our conditions, he said.

In 2007 a two-year protocol on intention between the U.S. Company Conoco Phillips and SOCAR on the development of Umid and Babek prospects is expiring. However, it was resolved to cancel the protocol because the sides could not reach a mutual understanding on some issues.

SOCAR has plans on the development of these fields, which was also included in the state program on development of fuel and energy complex in 2005-2015.

SOCAR is considering the issue on intensification of exploration of drilling on Babek and Umid fields. The drilling program for the fields is ready. The exploration drilling might begin in the first quarter of 2007. The geo-technical and geo-physical work in the field will be done for installation of the semi-submersible drilling rig (SDR) in the drilling point. Heydar Aiyev SDR will be attracted more often to the well drilling.