Azerbaijan, Baku, 28 July / Trend corr. V.Sharifov, S.Aliyev / The State Oil Company of Azerbaijan (SOCAR) and British Caspian Energy Group are to re-consider the agreement to establish the joint venture Shirvanoil (JV)of PSA type, SOCAR reported on 28 July /
At present, the company Caspian Energy Group owns 51% shares in the JV and SOCAR - 49%.
Earlier, in 2008, the companies agreed to cancel the PSA contract to restore, develop and share produced oil from the Kurovdag offshore field in Azerbaijan, which was signed in 2004. This contract has not come into force so far. Parliament had to ratify the document and the sides had to fulfill some pre-contract commitments.
Parliament ratified the document, but the Caspian Energy Group delayed to fulfill some pre-contract commitments. Furthermore, some issues in the PSA contract did not satisfy the company.
The sides agreed to cancel PSA contract and to continue work in the field through conditions of the Shirvanoil.
In 2007, Shirvanoil produced 215,000 tons oil from the contract area, less by 7% compared to 2006. The Kurovdag field was opened in 1929. Oil has been produced from the field since 1955.