Foreign investors declined developing “Pirallahi” oil field

Various companies during a lengthy period of time studied the project’s feasibility, SOCAR told Trend.

“However, later on, due to the inefficiency denied it”, SOCAR pointed out. From January to August SOCAR produced on its fields about 6 million tons of oil, exporting 1 3 million tons. In August production was 761,200 tons, export – 308,100 tons.

«One cannot say the interest of foreign companies dropped. It exists mainly only within the framework of the on-shore fields development prospect. The point is many companies do not possess a practical experience in operating on off-shore fields and large investments are needed here than for on-shore fields”, SOCAR noted.

One of the reasons for the off-shore projects expensiveness is construction of hydro-technical facilities and pipelines. «The extracted reserves from fields must be very attractive, and one ton oil production cost be low, SOCAR said.