ECONOMY

CONTRACT ON DEVELOPMENT OF “GARACHUKHUR” DEPOSIT SIGNED

19.06.2004 [13:22]
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As correspondent of AzerTAj informs, on June 18, the State Oil Company of the Azerbaijan Republic and the company «Noble Sky Ltd» has signed joint contract concerning development of deposit "Garachukhur". According to the PSA, SOCAR’s share will make 25 percent, and the second side - joint venture “Noble Sky Ltd”, founded by the largest in the Chinese National Republic Company "Chengli" and the company “Middle East Petrol”, - 75 percent. On terms of the contract, the company «Noble Sky Ltd» will finance share of the Azerbaijan side.

Opening the ceremony, taken place in the “Guba” Hall of the “Hyatt Regency-Nakhchivan” Hotel, the first deputy prime minister of republic Yagub Eyyubov has expressed confidence that joint cooperation of SOCAR and “Noble Sky Ltd” will give the Company great effect. He has noted, that the said contract also grows out successful oil strategy the basis of which has been founded by our national leader Heydar Aliyev.

Then, the president of State Oil Company Natig Aliyev informed on the oil deposit of "Garachukhur". He informed, that this deposit is in the central part of Absheron Peninsula, in 12 kilometers to the east from Baku.

The first operational well number 2 giving in day of 475 tons of oil, has been drilled here in 1928. The next years on the deposit, 121 wells have been handed over in operation, is extracted 36,2 million tons of oil. It is supposed, that now the volume of the stocks which have stayed here of oil makes 5 million 645 thousand tons. Since 1954, on this deposit it was not carried out any works. At present, 44 from the specified wells are in working order. The contract is signed for 25-years term and according to the arrangement can be prolonged to 5 years.

The passing gas received from the wells will be gratuitously handed to Azerbaijan. As a whole, in development of the deposit, investments for the sum almost 220 million US dollars will be invested. SOCAR will aspire to that the said agreement shortly has been realized in practice.

President of the company “Noble Sky Ltd” Ma Mingue, in turn, has stated to participants of ceremony that assigns great hopes for success of explorative, drilling and operational processes, which will be carried out on deposit "Garachukhur" and adjacent sites. Having estimated presence in Azerbaijan the favorable environment for investment as the most successful step and one of the basic terms in the field of economic development, Mr. Ma Mingue has once again emphasized, that they would achieve full-scale development of the deposit.