UGE-Lancer joins EITI implementation process in Azerbaijan

UGE-LANCER PTE.LTD became 32nd extractive sector company that joined Memorandum of Understanding on implementation of the Extractive Industries Transparency Initiative in Azerbaijan by signing the Instrument of Accession to MOU on January 21, 2012. UGE-LANCER PTE.LTD will submit the 2012 EITI report on payments to the government of Azerbaijan (17th EITI report).

In June 2010, the State Oil Company of Azerbaijan (SOCAR) signed a PSA contract with the UGE-Lancer PT?. Ltd. company on exploration, rehabilitation, development and production on the block, including Azerbaijan's Balakhani-Sabunchu-Ramana and Kurdakhani land oil fields. UGE-Lancer PT?. Ltd.'s share in the agreement was set at 75 percent, while Azerbaijan's share stood at 25 percent. The share of Azerbaijan will initially account for 55 percent of the revenue, with growth of up to 92.5 percent. The contract was signed for 25 years, with the possibility of extension for five more years. The contract area is 16.14 square kilometers.

The National Committee on EITI, 21 foreign and local extractive industry companies (The State Oil Company of the Republic of Azerbaijan, BP, EXXON, STATO?L, Total, Lukoil, Chevron, Shell, Devon Energy etc.) and non-governmental organizations signed MOU on November 24, 2004. Other local and foreign extractive industries companies joined MOU later. Thus, 32 companies are parties to MOU.

EITI is a special multilateral and voluntary initiative, supported by a coalition of companies, governments, investors and civil society organizations and global standard for improved transparency in the oil, gas and mining sector. Azerbaijan joined EITI in 2003. Azerbaijan is the first ever country to complete validation process and designated as EITI Compliant Country. Azerbaijan was awarded the "2009 EITI Award" for its commitment to EITI principles and criteria and achievements in EITI Implementation.


/Trend/