Azerbaijan signs new oil and gas contract

Today, the State Oil Company of Azerbaijan Republic (SOCAR) signed PSA contract with the Bahar Energy Limited Company for the exploration, rehabilitation, development and production of a unit, which includes the Bahar and Gum Daniz offshore fields located in the Azerbaijan sector of the Caspian Sea.

SOCAR Head Rovnag Abdullayev and CEO Bahar Energy Limited Richard McDougall signed the agreement in Baku.

Bahar Energy Limited was registered in the free trade zone Jebel Ali in the UAE.

SOCAR signed  memorandum of understanding with the company on April 16, 2009.

The Gum Daniz field has operated since 1955 locates at 21 kilometers south-east of Baku.

So far, the field has produced about 28.9 million tons of oil and 27 billion cubic meters of gas.

The Bahar field operated since 1969 islocated at 40 kilometers southeast of Baku. So far, the field has produced more than 16.8 million tons of oil and nearly 128.7 billion cubic meters of gas.

During the next five years, experts predict decline in gas production at the Bahar filed at 15 percent and condensate -10 percent.

Therefore SOCAR believes it would be possible to stabilize oil production and increase reserves of residual hydrocarbons through attracting foreign capital to implementation of short-term rehabilitation programs at these fields.

/Trend Capital/