Equinor, SOCAR to jointly appraise Karabagh in the Caspian Sea
Statoil Azerbaijan and SOCAR have signed a risk service agreement for appraisal and development of the Karabagh oilfield in the Caspian Sea.
BAKU, Azerbaijan – Statoil Azerbaijan and SOCAR have signed a risk service agreement for appraisal and development of the Karabagh oilfield in the Caspian Sea, and a production-sharing agreement for the Ashrafi, Dan Ulduzu, Aypara area.
Karabagh is 120 km (75 mi) east of Baku, close to the SOCAR-operated Shallow Water Gunashli field and the BP-operatedAzeri Chirag Gunashli (ACG) field, in which Statoil Azerbaijan has a 7.27% interest.
The Ashrafi, Dan Ulduzu, Aypara exploration area is 100-110 km (62-68 mi) northeast of Baku.
Eldar Sætre, president and CEO of Equinor (formerly Statoil) said the agreements would strengthen the company’s position in a prolific basin and lead to growth options, adding that the licenses are close to ACG in a basin that the company knows well.
Statoil Azerbaijan and SOCAR plan to form a 50-50 joint operating company, and will take a final investment decision on field development following appraisal and engineering studies.