Azerbaijani parliament ratifies another oil and gas contract

The Azerbaijani Parliament ratified the contract for exploration, rehabilitation, development and production sharing on the block of Balakhani-Sabunchi-Ramani and Kurdakhani fields.

SOCAR and UGE-Lanser PTI company signed a contract for the rehabilitation, development and production section (PSA) on onshore block of fields Balakhani-Sabunchu-Ramani and Kurdahani in June. The contract covers an area of 16.14 square kilometers.

The contract was signed for 25 years, with a possible extension for another five years. Lanser got about 75 percent of equity participation in the contract and SOCAR -25 percent.

Income from profit oil will be calculated by the formula R-factor. Azerbaijan's share will initially hit 55 percent of revenue, with growth up to 92.5 percent, SOCAR head Rovnag Abdullayev said earlier.

Investment in the project can reach several hundred million dollars. It will be sufficient for reconstruction of the field and stabilization of oil production.


/Trend/