SOCAR, Caspian Energy to Sign Kyurovdag PSA

The State Oil Company of the Azerbaijani Republic (SOCAR) and Britain's Caspian Energy Group intend to sign a revised contract to develop the onshore Kyurovdag oil field.

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.