Cabinet defines liabilities under RSA

By Azernews

By Nigar Abbasova

Azerbaijan’s Cabinet of Ministers has approved obligations of the Government under a risk-service contract signed between SOCAR and SOCAR Umid Oil and Gas Limited companies on January 12.

The agreement envisages exploration and development operations on the Umid-Babek block of gas fields.  

The liabilities were determined on January 30, 2017, while the decision on their confirmation entered into force from the moment of the signing, Trend reported.

SOCAR head Rovnag Abdullayev earlier said that the contract will be presented to the financial institutions and foreign companies, so that interested parties will be able to join the financing of this project.

SOCAR announced the discovery of the Umid field in 2010. The volume of its reserve exceeds 200 b cm of gas and 40 million tons of condensate. The field is located 75 kilometers from Baku, 40 kilometers away from the coast. SOCAR conducts extraction at this field using its own funds, while almost 1 bcm of gas and 153,000 tons of condensate have been produced since the beginning of development (in 2011). The construction and installation of four new platforms are planned within Umid field's development.

The reserves of Babak perspective structure are estimated to amount to some 400 bcm of gas and 80 million tons of condensate.