Major events in Caspian countries' oil and gas industry for last week (June 9-13)

Analysis Materials 18 June 2014 10:30 (UTC +04:00)

SOCAR, BP to conduct geological exploration work in shallow part of Absheron archipelago

The State Oil Company of Azerbaijan (SOCAR) and Britain's BP company have signed an agreement to conduct geological exploration work in the shallow part of the Absheron archipelago, Khoshbakht Yusifzadeh, the First Vice-President of SOCAR said.

He pointed out that before, it was difficult to carry out work in these areas, but currently, modern equipment and machinery is used for these purposes.

"We have signed an agreement with BP to carry out work in this area and this will probably allow to discover small oil fields there," SOCAR's first vice-president stressed.

Yusifzadeh went on to add that SOCAR also intends to consider the proposals from companies on prospecting and exploration of onshore oil deposits in Azerbaijan.

Currently, special attention is paid to discovering oil fields in Azerbaijan, as the probability of discovering gas fields in the country is high.

"Therefore, we return to onshore [...] We want to resume oil exploration by using modern technologies and equipment," he stressed.

Kazakhstan signs agreement on shipyard construction

Chairman of the Board of JSC NC KazMunaiGas Sauat Mynbayev and CEO of the Italian ENI company Claudio Descalzi signed an agreement on the implementation of the "Issatay" and shipyard projects, the Kazakh company reported.

In accordance with the signed agreement, both of the companies confirm their readiness to implement "Issatay" and "Shipyard" projects. Under the KazMunaiGas `s "Issatay" project and ENI agreed to conduct exploration work on the same block in the northern part of the Kazakh sector of the Caspian Sea.

As the report said, the parties have determined that a joint operating company will carry out exploration. The KazMunaiGas and ENI started their work with the Ministry of Oil and Gas in order to obtain the right for subsoil use. Both of the companies hope that the "Issatay" project will be successful, and KazMunaiGas and ENI will be able to announce about the commercial discovery in accordance with the geological exploration results.

The agreement also provides for the implementation of the project on the construction of shipbuilding / shipyard in Kuryk settlement on the Caspian coast of the Mangistau region ("Shipyard").