TODAY.AZ / Business

Exxonmobil proposed SOCAR $27 mln for refusal from exploration drilling in Azerbaijan

07 May 2005 [17:50] - TODAY.AZ
American ExxonMobil during negotiations with State Oil Company of Azerbaijan compensation in amount of $27 mln for refusal from drilling of exploration well at prospective structure "Nakhichevan".
The agency Trend obtained this information form the head of SOCAR Natik Aliyev.

PSA contract was signed for exploration and development of this prospective structure 1 August 1997. The share participation of parties in the contract was distributed as follows: SOCAR- 50% and ExxonMobil - 50% (operator).

"Negotiations on this issue are in completion stage. The last stage is left. I presume, we'll agree. The sum of compensation is $27 mln. This is their proposal and we work on it", N.Aliyev said.

Designed depth of the second well at "Nakhichevan" according to signed contract is to be 5350 meters, this is by 50 meters lower than bed of Upper Kirman sand set.

Azerbaijan experts of oil industry expressed their opinion to agency Trend, ExxonMobil is able to discover hydrocarbons at "Nakhichevan" in case, if the point of bedding of the second well will be at the arch of the structure, where the possibility of exposure of Upper Kirman sand set is possible.

Drilling from rig "Istiglal" of the first well at "Nakhichevan" was suspended in February 2002 and resumed 22 August 2001. Initially, the designed depth of the well was 6444 meters, final - 6746 meters. By results of drilling ExxonMobil didn't discover sufficient resources of hydrocarbons.

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