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Azerbaijani parliament ratifies new gas contract

Thursday, May 4
The contract was signed between Azerbaijanís state oil company SOCAR and SOCAR Umid Oil and Gas Ltd.

The Azerbaijani parliament (Milli Majlis) has ratified a risk service contract (a contract with a minimum guarantee of compensation) on the exploration and development of an offshore block, which includes the Umid gas field and the promising Babek structure in the Caspian Sea.

The contract was signed between Azerbaijanís state oil company SOCAR and SOCAR Umid Oil and Gas Ltd.

The Azerbaijani parliament has also ratified an additional contract for the exploration and carrying out of oil and gas operations to develop the sea block that includes the Umid field and the Babek structure in the Azerbaijani sector of the Caspian Sea, signed between SOCAR Umid Oil and Gas Ltd and Umid-Babek Exploration & Production.

SOCAR, along with the operating company, SOCAR Umid Oil and Gas Ltd, signed a risk service contract on January 12 on the exploration and development of the Umid gas field and the Babek gas structure.

Earlier, SOCAR President Rovnag Abdullayev said that this contract will be presented to financial institutions and companies, which can then join in financing the project.

SOCAR announced the opening of the Umid field in 2010. According to the results of the drilling of the first exploration well, the volume of the field reserves hit over 200 billion cubic meters of gas and 40 million tons of condensate, SOCAR specialists said.

Reserves of the Babek field may be 400 billion cubic meters of gas and 80 million tons of condensate. (news.az)