Agip Exits Kyurdashi Oil Project

A consortium led by Agip SpA has decided not to drill the third test well in the Caspian Sea's Kyurdashi block and has left the project, according to Socar.

The consortium paid Socar compensation of $15-20 million late last week for its decision not to drill the third well. Agip decided against drilling the third well after it was dissatisfied with the results at in the first and second wells drilled in 2000-2001. Socar will put the capital toward its participation in the Baku-Ceyhan pipeline project. Kyurdashi is the third project that has been halted in Azerbaijan in 2001 as a result of unsuccessful drilling.