Entering new agreements in Azerbaijan

May 30, 2018 11:15 CEST | Last modified May 30, 2018 14:18 CEST
Tim Dodson (left) and Rovnag Abdullayev
Tim Dodson, executive vice president for Exploration in Equinor (left) and President of SOCAR, Rovnag Abdullayev, signed the agreements in Baku today.

Statoil Azerbaijan (part of the Equinor group) and Azerbaijan’s state oil company SOCAR have today, 30 May, signed a Risk Service Agreement (RSA) related to the appraisal and development of the Karabagh oilfield and a Production Sharing Agreement (PSA) for the Ashrafi, Dan Ulduzu, Aypara area.

The Karabagh oilfield is located 120 kilometres east of Baku, close to the SOCAR operated Shallow Water Gunashli (SWG) field and the BP operated Azeri Chirag Gunashli (ACG) field, in which Statoil Azerbaijan has a 7.27% interest.

The Ashrafi, Dan Ulduzu, Aypara exploration area is located around 100-110 kilometres north-east of Baku.

“The agreements signed today represent a natural next step in the region. This will strengthen our position in a prolific basin and develop growth options. The licenses lie in close proximity to the ACG field in a basin we know well. We now look forward to work on these new exploration projects in partnership with SOCAR,” says Eldar Sætre, President and CEO of Equinor.

Eldar Sætre
CEO Eldar Sætre

“Today we enter a new phase of cooperation between SOCAR and Equinor. 25 years of partnership between our companies have laid a solid foundation for efficient cooperation on the new joint projects. These agreements will take on significance, contributing to the stability of oil production and satisfying the growing demand for natural gas in Azerbaijan, while providing raw materials for the processing industry,” says President of SOCAR Rovnag Abdullayev.

To operate the licences Statoil Azerbaijan and SOCAR will form a 50-50 joint operating company.

A final investment decision on field development will be taken following appraisal and engineering work.

The agreements are subject to customary conditions and approval by the authorities.

Contact

  • Press Erik Haaland, International press spokesperson, Media Relations, +47 954 21 770 (mobile)

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Statoil in Azerbaijan

  • Office established in Baku 1992
  • One of the largest foreign investors in the country
  • 2017 average equity production of 50,300 boe/d
  • 7.27 percent interest in the BP operated Azeri Chirag Gunashli (ACG) oil field
  • 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) oil export pipeline that is the main export rout for the ACG oil
Azerbaijan map