Oil Joint Venture in Azerbaijan to Turn to PSA Contract
Azerbaijan, Baku / Trend corr S. Aliyev / The State Oil Company of Azerbaijan Republic (SOCAR) has notified its partners on the Shirvanoil joint-venture regarding turnover of equipment of the JV and its turning to the balance of an operational company. After consideration and adoption of the document, the JV will be turned to a PSA contract.
A PSA contract on restoration, development, and division of the production from a block at the Azerbaijani Kurovdag oil on-shore field was signed in November 2004 by SOCAR, Caspian Energy Group company and an affiliated company of SOCAR. In accordance with the agreement, Shirvanoil Operating Company will be established on the basis of Shirvanoil JV.
In compliance with the contract, SOCAR and Caspian Energy Group own a 50% share of the enterprise each. The amount of presumed investments to the project makes up $200-300mln.
Kurovdag field was discovered in 1929; its development began in 1955.
After turning to a PSA contract, drilling work will begin in the Kurovdag field. Drilling will be implemented by the British Monument Oil service company in the southern part of the field.