EXXONMOBIL OFFERS $ 27 MILLION. FOR CANCELLATION OF EXPLORATION WELL DRILLING
The U.S. company ExxonMobil offered SOCAR compensation of $ 27 million for failure to continue exploration work on the prospective structure Nakhichevan in the Azerbaijani sector of the Caspian Sea. At a press briefing to journalists in Baku SOCAR President Natik Aliyev, reports KZ-today. In particular, it is a refusal to drill the second exploration well in the contract area, as provided for mandatory minimum work program for the project.
The reason for failure is that the first exploration well drilled on this structure in 2002, found no commercial hydrocarbons. Negotiations on this issue are in the final stage. The last remaining step.
I think that we agree. The compensation of about $ 27 million - that is their offer and we#39;re working on it - said Mr. Aliyev. Contract type Production Shearing Agreement (PSA) for the exploration and development of prospective structure Nakhchivan was signed on 1 August 1997, ratified on December 5 of that year.
Equity participation of the parties in the contract are as follows: SOCAR-50% and ExxonMobil - 50% (operator). A similar situation is with the contract for the exploration and development of prospective offshore structures #39;Zafar - Mashal#39;. In this case, ExxonMobil also refuses to drill the second exploration well in view of the poor track record of drilling the first well drilled in 2004.
However, according to Mr. Aliyev, the negotiations on compensation for the project has not yet begun. The PSA contract for the development of prospective structure #39;Zafar - Mashal#39; was signed on 27 April 1999. Participants in the project are SOCAR - 50%, ExxonMobil - 30% (operator), ConocoPhillips - 20%. State Oil Company of compensation for failure to continue exploration in the contract areas are not new, and to date there have been five projects, 4 of which included the exploration and development of prospective structures and units in the Azerbaijani sector of the Caspian Sea (#39;Lankaran-Talysh-Deniz-Deniz#39; - the operator TotalFinaElf), #39;Absheron#39; - operator Chevron, #39;Kurdashi#39; - the operator and Agir #39;Yanan Tava - Ateshgyah - Mugan-Deniz#39; operator Japan Azerbaijan Operating Company.
In addition, the British Ramso paid compensation for the failure to continue to work on the project of rehabilitation, exploration and development of onshore block #39;Muradkhanli#39;.
