TheAzerbaijani government has decided on its guarantees and obligations with regard to the development of oil on the land block of the field ‘Balakhany-Sabunchi-Ramany’ and Kiurdakhany, 1news.az reports.
Azerbaijan has approved the obligations of the agreement between the State Oil Company of Azerbaijan (SOCAR) and UQE-Lanser PTI. LTD. Signed on June 3rd 2010.
The share of the German company is 75%, while the Azerbaijani one is 25%. In the first stage the German company will pay a bonus of $2 million, and the same sum again at a later period. The terms of the agreement are 25 years and can be prolonged for 5 more years.
The development of the fields will cost approximately $100 million of investment. According to the agreement, Lanser Ltd. will provide SOCAR with an investment program in 3 months, which will show the needed sum of investment.
The oil fields have a 140-year old history. So far over 280 million tons of oil were extracted and the remaining reserves estimate a similar amount of oil is left.
