At the end of October SOCAR to start drilling in Israel

At the end of October 2012 SOCAR will start drilling in the territorial waters of Israel on Med Ashdod oil field in the Mediterranean Sea, Farid Ahundov, General Director of Caspian Drilling Company (CDC) -  SOCAR's daughter company, said in his interview to Novosti-Azerbaijan.

"Preparation of Israel Shemen (Med Ashdod) field to development has been completed and the Israel government has granted a license for all the works," Ahundov said. He added that according to the agreement, CDC will drill two exploration wells about 6000 meters deep in Israel. But drilling of the second well depend on the investors, he added.

In this project CDC acts as a partner of Israeli Shemen Oil & Gas Resources Ltd (SMOG - former ACC Group) consortium.

CDC has concluded the partnership agreement with SMOG in February 2011. According to the agreement, CDC will be in charge of the drilling works and it will be granted 5% of license of Med Ashdod.

At present about 30% of oil consumed by the Israeli market is imported from Azerbaijan via Baku-Tbilisi-Ceyhan oil pipeline. In the Turkish port oil is filled into the tankers and delivered to Israel through the Mediterranean Sea.

SOCAR's representatives said earlier that the contract cost of drilling of one well will be about $80 million.

* CDC company was established in 1995 between SOCAR and US Santa Fe. It has two semi-submersible drilling rigs in the Caspian Sea. Several years ago full control over the company was transferred to SOCAR. Now it drills wells for BP-Azerbaijan for the Azeri-Chirag-Guneshli and Shah-Deniz projects.-0-