Three oil and gas contracts to be confirmed in Azerbaijani Parliament

The contract signed between the State Oil Company of the Azerbaijani Republic (SOCAR) and French Total on the Absheron sea block dating February 27. One exploratory well worth $100 million will be drilled on the block in three years. Other two wells will be drilled on the block the next three years.

Under the contract, SOCAR owned 40 percent of shares and Total - 60 percent. Total will finance SOCR's share during exploratory period. Total may sell its share to another French company Gaz de France SUEZ in the future.

Two other contracts were submitted to the Parliament by two joint companies - Shirvan Oil and Anshad Petrol, which produces oil in Azerbaijan.

Last year, Shirvan Oil and Anshad Petrol offered SOCAR to transfer the joint venture to PSA contract.

The Shirvan Oil is operating of Sept. 1, 1997. Company's participants, which produce the Kurovdag field, are SOCAR - 49 percent and British Caspian Energy Group - 51 percent.

The Kurovdag field was operated in the Kur hollow in 1955.

The Anshad Petrol is producing oil on the contract areas Nefchala, Khili and Babazanan.

The Anshad Petrol was created by SOCAR and Turkish Atilla Dogan Petrol in 1993. In 1995, the Malaysian Land and General Berhad became project's share after acquiring 17.15 percent of shares of Atilla Dogan Petrol.

Currently SOCAR owns 51 percent, Rusneft Neftchala Investment Limited - 31.85 percent and Land and General Berhad - 17.15 percent in the project.

/Trend Capital/