Azerbaijan will, possibly, discover new fields, Gregory Rayley, BP Azerbaijan Vice President for Exploration, said in his speech at the Caspian Oil& Gas 2013 conference in Baku at the end of last week.
Rayley is sure that new big gas fields will be discovered offshore Azerbaijan, if exploration is carried out properly.
The question is on what conditions the Azerbaijani authorities must cooperate with the foreign investors in the new projects.
A source from the State Oil Company of Azerbaijan (SOCAR) said that the contract on extraction of deep-lying gas on the Azeri-Chirag-Guneshli (ACG) bloc of offshore fields is expected to be signed till the end of the year to start production in 2019.
SOCAR’s specialists estimate the ACG gas resources at 300 billion cub.m. The consortium operated by BP, which has been extracting oil in ACG and is familiar with the peculiarities of the bloc, will be in charge of gas production. BP confirmed that the negotiations are conducted, but refused to comment.
The same source said that SOCAR has offered the consortium a new Risk Service Agreement (RSA with a minimum guarantee of compensation). Unlike the production sharing agreement (PSA), under the RSA contracts all extracted hydrocarbons will be transferred to SOCAR and it will sell them and distribute the made profit among all the partners of the project.
SOCAR’s representative said that SOCAR will take this mechanism as the basis, but it will also add some other ones, which will interest foreign partners. In particular, SOCAR is ready to compensate costs for the well drilling. He said the peculiarities of the Caspian Sea fields will be taken into account in RSA.—0—
Economics
-
Azerbaijan is poised to increase wheat imports for the 2024-2025 season following a significant drop in domestic wheat production this year. According to data from the State Statistics Committee, the country harvested 1.68 million tons of wheat in 2024, marking an 8.1% decline from the previous year. This downturn in output, combined with rising import volumes in recent months, indicates that Azerbaijan may lean more heavily on foreign suppliers to meet its wheat needs.
-
Azerbaijan Railways CJSC (ADY) has announced the restructuring of its container transportation management in an effort to enhance the efficiency of transit cargo transportation. As part of this reorganization, ADY Express will merge with ADY Container starting on November 1, 2024. The consolidation is aimed at expanding the range of services offered in both container and carriage transportation.
-
Azerbaijan has introduced a legal framework enabling the electronic state registration of legal entities with foreign investments, regardless of whether their founders are individuals or legal entities, according to the State Tax Service. The announcement was made by Samira Musayeva, Deputy Head of the State Tax Service, during a meeting of the "Entering Business" Working Group.
-
The World Bank aims to deepen its involvement in Azerbaijan's economic development through a new partnership framework program, according to discussions between Azerbaijani officials and World Bank representatives. The proposed framework, which will cover the years 2025-2029, is designed to support the country’s transition to an innovative and less resource-dependent economy.
Leave a review