SOCAR Refuses from Conduct of Further Talks with Foreign Company on an Offshore Field
The State Oil Company of Azerbaijan (SOCAR) refused to extend a memorandum with Eurasia Energy Limited on the perspective of conclusion on Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA") on Alat-Daniz field, Trend reports.
The Company itself intends to invest in it and develop this field.
The Block includes the production of Alat-Deniz oil and gas field and a string of seven prospective exploration structures (Hamamdag-Deniz, Garasu, Sangi-Mugan, Ulfat, Aran-Deniz, Dashly and Sabayil) moving in a south-eastern direction from the coast to seventy kilometers offshore.
According to SOCAR, the remainder of recoverable oil reserves at Alat Daniz comprises of 14 million barrels of oil and 1 billion cu. m. of gas. The major productive zones lie at a depth of 3700-4500m.
After signing the memorandum with SOCAR in December 2005 the commercial talks over Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA") on Alat-Daniz field were to complete by December 7, 2006. Both sides failed to meet the schedule in achieving the agreement on major commercial principles.
Eurasia Energy concluded investigation in the development of Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA") on Alat-Daniz field. Eurasia Energy Limited attracted TRACS International Consultancy Ltd. and Genesis Oil and Gas Consultants Ltd. to advise and consult with management of the project.
Water depths are predominantly up to twenty meters and reach a maximum of fifty meters at the far end of the Block. The Alat-Deniz field was discovered in 1983 and until mid-2006 produced approximately 12.5 million barrels of oil and 1 billion cubic meters of gas.