Arawak Energy Corporation announced the conduct of talks with the State Oil Company of Azerbaijan (SOCAR) on possibility of increase of prices on vacant gas that Arawak produces under the project on Southwest Gobustan Development, Trend reports.
Arawak Energy informed that the current contract price is $1.33 per 1mln. BTU (some $47.4 per 1,000 cu m).
The company assures that the problems of abnormally high pressure in two wells Duvany-102 and Duvany -108 will be removed by the end of February 2007. The exploitation well Kenizadag -101 is currently being tested. 2D and 3D seismic exploration in the coastal zone also continues, the same source said.
Gobustan Operating Company (GOC) has developed Southwest Gobustan under the PSA agreed with SOCAR. In February 2006 the company began selling free gas to Azerigas Company of SOCAR. In GOC 80% stock belongs to Commonwealth Gobustan Limited and 20% to SOCAR. In Commonwealth Gobustan Limited 37.17% belongs to Arawak Energy and 62.83% to China National Petroleum Company.