SOCAR told Interfax that the Shirvanoil join venture that it and the British company set up had been developing the field since 1997. But the joint venture as a vehicle to develop the field no longer meets the parties' interests, and the partners have decided to sign a production- sharing agreement (PSA), SOCAR said.
"Nearly all work on the contract has been completed, and it remains to finalize a few details. The same parties will sign the PSA," SOCAR said.
At this stage, it is thought the companies will have equal shares of the PSA. SOCAR owns 51% and Caspian Energy 49% of the Shirvanoil joint venture, which started to operate in September 1997.
Kyurovdag, one of Azerbaijan's biggest onshore fields, was discovered in 1955 and has been under production since 1956.
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