Entering new agreements in Azerbaijan

Entering new agreements in Azerbaijan

Entering new agreements in Azerbaijan

The FINANCIAl -- Statoil Azerbaijan and Azerbaijan’s state oil company SOCAR have signed on May 30 a Risk Service Agreement related to the appraisal and development of the Karabagh oilfield and a Production Sharing Agreement for the Ashrafi, Dan Ulduzu, Aypara area.

The Karabagh oilfield is located 120 kilometres east of Baku, close to the SOCAR operated Shallow Water Gunashli  field and the BP operated Azeri Chirag Gunashli field, in which Statoil Azerbaijan has a 7.27% interest, according to Equinor.

The Ashrafi, Dan Ulduzu, Aypara exploration area is located around 100-110 kilometres north-east of Baku.

“The agreements signed today represent a natural next step in the region. This will strengthen our position in a prolific basin and develop growth options. The licenses lie in close proximity to the ACG field in a basin we know well. We now look forward to work on these new exploration projects in partnership with SOCAR,” says Eldar Sætre, President and CEO of Equinor.

“Today we enter a new phase of cooperation between SOCAR and Equinor. 25 years of partnership between our companies have laid a solid foundation for efficient cooperation on the new joint projects. These agreements will take on significance, contributing to the stability of oil production and satisfying the growing demand for natural gas in Azerbaijan, while providing raw materials for the processing industry,” says President of SOCAR Rovnag Abdullayev.

To operate the licences Statoil Azerbaijan and SOCAR will form a 50-50 joint operating company.

A final investment decision on field development will be taken following appraisal and engineering work.