ExxonMobil will pay compensation for undrilled Caspian well

After a series of lengthy negotiations, ExxonMobil has reached an agreement with the State Oil Company of Azerbaijan (SOCAR) on compensation for the refusal to drill a second exploration well on the Naxcivan and Zafar-Marshal offshore fields.

Offshore staff

(Azerbaijan)- After a series of lengthy negotiations, ExxonMobil has reached an agreement with the State Oil Company of Azerbaijan (SOCAR) on compensation for the refusal to drill a second exploration well on the Naxcivan and Zafar-Marshal offshore fields.

The companies have already signed all relevant documents which detail that ExxonMobil will pay $32 million for the Zafar-Marshal field and $18 million for the Naxcivan field.

ExxonMobil stopped exploration drilling on these fields in 2004. Data from the first exploration well informed company experts that continuing the search for commercial oil and gas deposits on the fields would not be economically feasible.

01/26/2006

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