Sinopec to Sign PSA to Develop Pirshagi Field in Azerbaijan

In June Sinopec is expected to sign a production sharing agreement with SOCAR to develop the onshore Pirshagi Field. The contract is valued at US $80 million and is for a period of 25 years. Reserves for Pirshagi are estimated at 75 million barrels. The move to sign this contract follows the company's recently blocked attempt to acquire a stake in a Kazakhstan offshore oil project last week. A Sinopec spokesperson said that the company is not discouraged by recent events and is continuing its search for acquisitions outside of China. Shengli Oil & Gas, a subsidiary of Sinopec, will carry out the contract to develop the field. Plans call for the re-activation of almost half the 30 wells in the field, seismic surveys, and drilling of exploration and production wells.