ANOTHER OIL CONTRACT APPROVED
Chairperson of the MM standing committee on natural resources, energy and ecology Asya Manafov stated that the Agreement “On restoration, exploration, development of the block containing Pirsaat oil field and the adjacent territories, and production sharing division” was signed on 4 June current year in Baku in accordance with the Executive Order of President of Azerbaijan dated 21 May 2003.
The Agreement comprises 33 clauses, 10 amendments and Supplements on creation of the Affiliated Oil Company of SOCAR. In connection with the sharing division among participants of the Project in the Article 1, it is stated that sharing participation at the date of conclusion of Agreement envisions: 20,0 percent for Affiliate Oil Company, 50 percent for the company Sheng Li Oilfield Sheng da Group Companies and 30 percent for new contractors.
SOCAR grants the contractor during the said Agreement an exclusive right in the limits of the territory, connected with the said field, and connected with the field oil and gas operations. Simultaneously, the contractor on the base of terms of the said agreement, is obliged to conduct oil and gas operations on sharing, on the base of the adopted oil-gas industry principles.
Detailed geological researches at the Pirsaat field have been conducted since 1930. Its industrial estimation was given in 1985 and currently the field is being developed.
There are 25 wells in exploitation, 10 of which are exploited with annual production of oil some 4,8 tons. Oil reserves here are estimated at 7 million tons, and the reserves to be exploited – are 1,5 million tons.
In the course of discussion of the Draft of Agreement, the deputies assessed the contract as successful continuation of the oil policy, being realized by esteemed Heydar Aliyev. It was noted that interest of large Chinese company in the Azerbaijani oil and the signed contract would play a significant role in development of both economic and political relations between the two countries.
Participating the event was chief of the department for foreign investments of the Company Sheng Li, Li Anxia expressed to the deputies his gratitude, noting that the Company he represents, would efficiently work in Azerbaijan, as it works in other foreign countries.
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