Sinopec Inks Contract for Pirsagat Field

Sinopec has signed its first oil deal with Azerbaijan for a $140-million project aimed at rehabilitating the small onshore field Pirsagat. The contract is between Sinopec subsidiary, Shengli, and SOCAR and gives Shengli a 50 percent stake in the venture. The contract is for a period of 25 years in which Shengli will re-develop the depleted field, which has an estimate 50 million barrels of reserves remaining.

"Under the terms of the contract the Chinese firm will have to double output on the field and drill four exploration wells over the next five years on the second part of the field," SOCAR head Natik Aliyev said.

The field, put on stream decades ago, currently produces a mere 160 barrels per day. SOCAR will hold a 25 percent stake. The remaining 25 percent is yet to be distributed.