Check-ups at RussNeft Not to Affect Its Projects in Azerbaijan
Measures taken by the Russian law-enforcement bodies with respect to oil company RussNeft has nothing to do with the projects in Azerbaijan and will not affect the contracts signed earlier. Every side enjoys peculiar rights and obligations under the contract and the companies have committed themselves to observe them, the State Oil Company of Azerbaijan informed Trend.
RussNeft informed that indeed the Investigation Committee of the Interior Ministry takes measures within the framework of the Criminal Code with respect to production activities of three daughter companies. Particularly, some documents were submitted t the investigation and several employees of the Company gave testimonies. At the same time Company refutes the media reports on the arrest of RussNeft President and states they actually damage their image. The State Oil Company of Azerbaijan (SOCAR) and Russia's Russneft has stroke a PSA (Production Sharing Agreement) contract on the joint development of Azerbaijani onshore bloc of oil fields Hovsan вЂ" Sykh. SOCAR share in the contract is 25%, Russneft obtained 75% of the PSA contract. Under PSA, the Company should increase its oil production from Hovsan-Zykh 1.5 time every two years.