SOCAR Plan to Drill an Exploration Well on Offshore Field
Rovnag Abdullayev, the President of the State Oil Company of Azerbaijan (SOCAR), stated in his televised speech on local channel AzTV that in 2007 SOCAR intends to carry out an exploration well on the Nakhchivan prospective field, earlier developed by the U.S. Company Exxon Mobil.
The contract on the Nakchivan field development was signed on August 1st 1997. Exxon Mobil's share in the Nakhchivan project was 50%, while another 50% was held by SOCAR.
In December 2005 SOCAR and Exxon Mobil came to an agreement on compensation for the denial of the drilling of the second exploration wells at Nakhchivan and Zafar-Mashal. The U.S. Company paid $32mln to SOCAR for the denial of drilling the second exploration well on Zafar-Mashal and $18mln for the denial of similar work on Nakhchivan.
From the time when oil and gas operations were launched in the country (1995) and to the end of 2005, Exxon Mobil invested about $3bln into the economy of Azerbaijan