Azerbaijan ratifies UAE deal on Caspian fields
The Milli Majlis (Azerbaijani parliament) on Tuesday
enacted a law to ratify the agreement signed with the United Arab
Emirates on joint development of the block of Bahar and Gum-Daniz
energy fields in the Azerbaijan sector of the Caspian Sea.
Valeh Alasgarov, chairman of the parliamentary committee for natural resources, energy and ecology, reminded that the contract was signed by Azerbaijan’s state oil company SOCAR and the UAE-based Bahar Energy Ltd. in December 2009.
The agreement envisions exploration, rehabilitation and production sharing from the block. SOCAR holds 20% in the PSA.
According to SOCAR, the agreement with the UAE firm was the 28th PSA contract Azerbaijan signed with foreign companies. The agreement covers 25 years, with a possible extension for five more years. Gas reserves available at the energy block are estimated at 25 billion cubic meters. The investment program is initially estimated at $1 billion, with the entire bulk of investment to be channeled by Bahar Energy Ltd.
The Gum-Daniz field, located 21 km southeast of the capital Baku, has been in operation since 1955. The deposit has produced about 28.9 million tons of oil and 27 billion cubic meters of gas to date.
The Bahar field, situated 40 km southeast of Baku, has been developed since 1969. Over 16.8 million tons of oil and 128.7 billion cubic meters of gas have been extracted from the field.*
Valeh Alasgarov, chairman of the parliamentary committee for natural resources, energy and ecology, reminded that the contract was signed by Azerbaijan’s state oil company SOCAR and the UAE-based Bahar Energy Ltd. in December 2009.
The agreement envisions exploration, rehabilitation and production sharing from the block. SOCAR holds 20% in the PSA.
According to SOCAR, the agreement with the UAE firm was the 28th PSA contract Azerbaijan signed with foreign companies. The agreement covers 25 years, with a possible extension for five more years. Gas reserves available at the energy block are estimated at 25 billion cubic meters. The investment program is initially estimated at $1 billion, with the entire bulk of investment to be channeled by Bahar Energy Ltd.
The Gum-Daniz field, located 21 km southeast of the capital Baku, has been in operation since 1955. The deposit has produced about 28.9 million tons of oil and 27 billion cubic meters of gas to date.
The Bahar field, situated 40 km southeast of Baku, has been developed since 1969. Over 16.8 million tons of oil and 128.7 billion cubic meters of gas have been extracted from the field.*
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