THREE FOREIGN OIL COMPANIES REFUSED FROM OIL EXPLORATION ON THE CASPIAN SEA

State Oil Company of Azerbaijani Republic (SOCAR) received refusals of three foreign consortiums on the projects of exploratory drilling at the Caspian contract areas.

CNA was informed from SOCAR sources that this May TotalFinalElf refused from drilling the second estimating wells at Lenkoran-Deniz structure. In fact TotalFinalElf made such was dissatisfied with the results of drilling of the first exploratory drilling at Talish-Deniz structure. In return, French-Belgian company suggested compensation from the project sum of the well USD 10-15 million. This July, the operator of Kurdashi offshore perspective bloc - Agip Azerbaijan B.V. and Exxon Azerbaijan operating company, which is developing Oguz perspective structure, also followed the example of TotalFinalElf. SOCAR official said that the sums received from compensation will be used by the company for paying the share of Azerbaijan in the project of construction of Baku-Tbilisi-Ceyhan main export pipeline. Its construction is estimated at USD 2.9 billion and SOCAR intends to hold about 30% of shares of the project.