Foreign Company Keen to Purchase Key Share in Azerbaijan’s Oil Project

Azerbaijan, Baku / corr. Trend V.Sharifov / Indian ONGC Videsh Limited intends to be included in the project to develop the Azerbaijan's onshore field of Kurovdag, ONGC Videsh's official representative International Oil Daily reported.

The contract to develop the onshore field of Kurovdag was signed on 5 November 2005. The validity of the contract is 25 years. Over three years, the operating company will have to increase the oil production by 1.5 times as compared to production in 2003. Participants in the project are Caspian Energy Group with 51% and State Oil Company of Azerbaijan (SOCAR) with 49%.

ONGC Videsh wishes to purchase a share of the Caspian Energy Group for $300 mln. Kurovdagh field was discovered in 1929 and has been developed since 1956. The maximum production on the field was noticed in 1966 at a level of 40,000 barrels per day. In January-April 72,750 tons of oil was produced in the field. In April alone, production totaled 18,120 tons.

A source in SOCAR informed Trend on 17 May that currently the oil on the field is produced by joint venture Shirvan Oil, but at present, the JV is transferred to PSA. "Presently we are resolving organizational issues with the foreign companies regarding the transference of the JV to PSA," the same source stated.