Azeri parliament ratifies oil contract with Exxon.

Nov 14, 1997 01:00 AM

Azerbaijan's parliament has ratified the republic's agreement with Exxon, providing for Exxon's participation in a $ 2 billion oil project in the Caspian shelf.
Exxon signed this contract with Azerbaijan's State Oil company (GNKAR) on August 1 during President Geidar Aliyev's first visit to Washington.
Under its terms, Exxon must pay $ 10 mm for participation in the project within 30 days since the document is ratified. It will pay $ 1 mm for each 100 million barrels of the discovered oil.
After daily oil production reaches 12,000 barrels, Exxon will receive a bonus worth $ 40 million. Also, it will get 2,000 dollars per sq km of the contract space which is 280 sq km.
The oil-field, Nakhichevan, is located 90 km south of Baku at the depth of 400-600 metres below sea level. Oil-rich layers are 5,000 metres below sea level. Local geologists had discovered the deposit in 1960 but the partners are still to prospect it.
The prospecting will last for 4 years, during which 3-D seismograms of the whole area should be obtained and at least 2 wells should be drilled. If no oil is discovered, the partners will bore at least 1 more well in the next 2 years. Exxon said it would cover all prospecting costs.

Source: not available
Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.


The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


Upcoming Conferences
« June 2019 »
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Register to announce Your Event

View All Events