SOCAR, BP in talks on gas output
Azerbaijani state oil company SOCAR and BP
Azerbaijan have launched talks on the production of natural gas
from the lower layers of the Azeri-Chirag-Gunashli (ACG) fields in
the Caspian Sea, SOCAR`s First Vice-President Khoshbakht Yusifzada
has said.
"According to the Production Sharing Agreement (PSA) on developing the deep-water section of the ACG fields signed in 1994, the project participants are to operate only in the upper and medium layers of the deposit. Therefore, a new agreement is to be signed to work in the lower layers," Yusifzada said.
Azerbaijan signed a deal in 1994 with major oil companies of the world called the Contract of the Century to tap its vast energy fields.
The SOCAR executive said the contract area holds at least 300 billion cubic meters of gas and condensate. Therefore, the tapping of gas reservoirs should begin soon. By that time, commercial issues are to be resolved, Yusifzada said.
He emphasized that, in addition to the shareholders already represented in the Contract of the Century, other interested companies could become involved in developing Azerbaijan`s gas fields. However, given that the contract shareholders are already operating at the ACG fields, their tackling gas output is more appropriate.
We recall that BP and French giant Total forwarded their proposals on developing the ACG`s lower layers to Azerbaijan four to five years ago. Natig Aliyev, who headed SOCAR at the time, said the offers had been appraised and that the terms of the new agreement to be signed would considerably differ from those of the Contract of the Century.
"According to the Production Sharing Agreement (PSA) on developing the deep-water section of the ACG fields signed in 1994, the project participants are to operate only in the upper and medium layers of the deposit. Therefore, a new agreement is to be signed to work in the lower layers," Yusifzada said.
Azerbaijan signed a deal in 1994 with major oil companies of the world called the Contract of the Century to tap its vast energy fields.
The SOCAR executive said the contract area holds at least 300 billion cubic meters of gas and condensate. Therefore, the tapping of gas reservoirs should begin soon. By that time, commercial issues are to be resolved, Yusifzada said.
He emphasized that, in addition to the shareholders already represented in the Contract of the Century, other interested companies could become involved in developing Azerbaijan`s gas fields. However, given that the contract shareholders are already operating at the ACG fields, their tackling gas output is more appropriate.
We recall that BP and French giant Total forwarded their proposals on developing the ACG`s lower layers to Azerbaijan four to five years ago. Natig Aliyev, who headed SOCAR at the time, said the offers had been appraised and that the terms of the new agreement to be signed would considerably differ from those of the Contract of the Century.
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