Current Market of Energy Resources Allows to Total to Develop Azeri Offshore Block
Azerbaijan, Baku / corr. Trend S.Aliyev / According to the information provided by the State Oil Company of Azerbaijan (SOCAR), French Total Company intends to sign a Production Sharing Agreement (PSA) on exploration and development of the Azerbaijani offshore block "Apsheron". Earlier companies had worked here and American ChevronTexaco was the operator of the project. Total also participated in this contract.
After the drilling of the first well, the reserves discovered in the field were recognized as unattractive and the project was closed in 2005. Presently taking into consideration the world prices for oil, this block has appeared as attractive for the development.
Total drills new wells and carry out various investigation works in "Apsheron" block.
Memorandum of Understanding on Development of Apsheron was signed bwteen SOCAR and Total on 8 February. According to the Memorandum, the sides should, within 12 months, agree up on the conditions of the PAS.