Azeri parliament ratifies exploration of Oguz oil field

Dec 08, 1997 01:00 AM

Nov. 8, 1997 Azerbaijan's parliament has ratified the agreement on exploration of the Oguz oil field in the Caspian sea. The field is located in the open sea, about 80 km south-east of the Apsheron Peninsula. The agreement between Azerbaijan's state oil company and the Mobil was signed in Washington on August 1 during Azerbaijani President Geidar Aliyev's first official visit to the United States.
Natik Aliyev, president of the Azeri oil company, said that it was the most profitable agreement for his country, since the share of his company accounted for 50 % for the first time. On the whole, the company has signed 9 such contracts.
During the exploration period which will take about 3 years, the American partners which also has 50 % of the stock will pay for the Azeri share. The project for the exploration and exploitation for the next 25 years will require around $ 2 bn of investments.
Mobil is to make the first payment to Azerbaijan (for the right of participation in the project) in a month after the agreement is ratified. According to the Baku newspaper Panorama, the first payment will account for $ 30 mm.
The exploration works will take place at a depth of 50 to 300 metres at an area of 430 sq km. According to preliminary estimations, there may be about 100 mm tonnes of oil at the site.

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