Middle East Petrol Remits Bonus payments to State Oil Fund

Oil&Gas Materials 30 April 2007 14:00 (UTC +04:00)

Azerbaijan, Baku / corr Trend U.Ismayilova / Shahmar Movsumov, the Executive Director of the State Oil Fund of Azerbaijan (SOFAR) stated on 30 April that In 2007 the State Oil Fund of Azerbaijan (SOFAR) expects to obtain some $70mln in bonus payments within the framework of oil and gas contracts in the country.

In the first quarter of 2007 the SOFAR obtained $1mln from Middle East Petrol in connection with the enactment of the contract on Garachukhur onshore field rehabilitation and development.

The Garachukhur Production Sharing Agreement was signed between the State oil company of Azerbaijan (25% stake) and Noble Sky (75% stake), founded between the Chinese Sheng Li and Middle East Petrol. The remnant oil reserves on Garachukhur comprise 5,645mln tons.

Movsumov said that in 2007 the SOFAR expects to receive $20mln in bonus payments from the Russian oil company LUKOIL within the framework of the project on the rehabilitation of Yalama field (D-222 bloc).

It is planned to obtain $45mln from partners on the Shah Deniz gas condensate development project

In the second quarter the funds (from the Shah Deniz project) will be remitted to the SOFAR," he added.