Statoil - Azerbaijan - web.jpg

Equinor expands in Azerbaijan

May 30, 2018
2 min read
Print this page

Norway's Equinor has signed a number of deals with Azerbaijan’s state oil company SOCAR on possible development of the Karabagh oilfield as well as exploration prospects in three areas in the Caspian Sea.

Statoil Azerbaijan (part of the Equinor group) signed a Risk Service Agreement (RSA) with SOCAR 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 per cent interest.

The Ashrafi, Dan Ulduzu, Aypara exploration area is located around 100-110 kilometres north-east of Baku. To operate the licences Statoil Azerbaijan and SOCAR will form a 50-50 joint operating company.

“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,” Eldar Sætre, president and CEO of Equinor said in a press testament.

“Today we enter a new phase of cooperation between SOCAR and Equinor. 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,” said President of SOCAR Rovnag Abdullayev.

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.