Azerbaijani parliament ratifies giant oil contract

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. The Absheron unit is 100 kilometers of Baku and at the 500 meters of depth.

According to experts' estimates, gas reserves in this field can be comparable with the gas reserves in the Shah Deniz field which is near. If they are revealed, they will be exported to the world markets.

/Trend Capital/