German RWE signs memorandum on perspective offshore field development in Baku

From Azerbaijani side, the document was signed by SOCAR President Rovnag Abdullayev and from German side by RWE board chairman Juergen Grossmann.

SOCAR President Rovnag Abdullayev said during the signing ceremony that the memorandum will create conditions for RWE activity within the project to develop perspective Nakhchivan offshore field during a year.

"During a year operations on the preparation of the PSA contract will be held. Exploration operations will be carried out on the field after contract is signed," Abdullayev said.

According to SOCAR experts, despite the fact that previously commercially attractive reserves on the structure were not revealed, but the drilling conducted on the structure showed good results, which could indicate the presence of reserves.

The reserves on the structure are projected at 300 billion cubic meters of gas and 40 million tons of gas condensate.

The contract for the development of Nakhchivan perspective offshore field was signed on 1 August 1997. Participants to the project were ExxonMobil and SOCAR (50% each).

The contract was closed due to discovery of commercially unattractive volumes of hydrocarbons.


/Trend Capital/