Azerbaijan, Baku, 12 February / Trend / Absheron Investment Ltd has joined the Extractive Industry Transparency Initiative (EITI) in Azerbaijan, the State Oil Fund of Azerbaijan (SOFAR) reported on 12 February.
The company should submit to the Azerbaijan Government a report for 2007. The number of participants in EITI reached 26.
A memorandum was signed on the 24th of November 2004 by twenty-one foreign companies, including SOCAR, BP Azerbaijan, Exxon, Statoil, Total, Lukoil , Unocal, Shell, and Devon Enerji, who joined EITI. Inpex Azerbaijan, Binaqadi Oil and RAFI Oil were the last companies to join the memorandum.
Russia's RussNeft signed a PSA (Production Sharing Agreement) contract with the State Oil Company of Azerbaijan (SOCAR) on the joint development of the Azerbaijani onshore oil field Hovsan-Zykh Trend reports. SOCAR has a 25% share in the contract and RussNeft obtained 75% of the PSA contract. In accordance with the contract, the company should increase its oil production from Hovsan-Zikh by 1.5 times every two years.
On 6 November 2007 the Russian company RussNeft Absheron Investments Limited paid SOFAR a bonus in the amount of $2mln as part of the Zykh-Hovsani contract.
The contract area of the Zykh field opened in 1935 and is 65,000 sq. m. The remaining oil reserves are 12 mln tons. There are 234 wells in the area. 168 of them have been in operation during different periods of time.
Hovsani field was discovered in 1948. The current oil production from the field is 260 tons and 900,000 cu. m of gas a day. Oil is produced from 19 wells
