RWE group and the State Oil Company of the Republic of Azerbaijan (SOCAR) are signing a memorandum of understanding to explore and develop the Nakhichevan structure in the Azerbaijan sector of the Caspian Sea.
Both parties anticipate that the exploration, development, and production sharing agreement will be drawn up in the next few months. Terms for the agreement will include how much of the hydrocarbons produced by the project each party will receive, along with licensing and permit agreements for the exploration phase. No start date for work has been set.
The Nakhichevan structure is about 50km off the coast of Azerbaijan and is the latest area of exploration in an attempt to retrieve the country's hydrocarbon resources.
According to Jorgen Grumman, RWE chairman, the potential gas deposits in Nakhichevan could help to stabilize the energy security of Europe. 'Europe needs access to the immense oil and gas reserves in the Caspian Sea. As a result, RWE will also be able to grow in the upstream sector.'
by: Trevor Demara,
tdemara@oilonline.com
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