Equinor, SOCAR jointly evaluating possible dev’t solution for Karabagh project

Energy Materials 31 March 2022 13:45
Baku, Azerbaijan Trend News Agency Leman Zeynalova
Equinor, SOCAR jointly evaluating possible dev’t solution for Karabagh project

Norway’s Equinor and Azerbaijan’s state oil company SOCAR are evaluating possible development solution for Karabagh project, the company told Trend.

“Equinor continues to work with SOCAR to progress and mature the Karabagh project, and this includes joint evaluations of a possible development solution,” said the company.

As for Ashrafi-Dan Ulduzu-Aypara structure, the company said it has no new updates at this point.

The Karabagh prospective structure was identified in 1959 as a result of seismic surveys. It was specified in 1984 and its oil and gas reserves were confirmed in 1997-1998 through exploration drilling. The oilfield is located 120 km east of Baku, at a depth of 150-200 meters in the open sea.

The consortium operated by Caspian International Petroleum Company (CIPCO) drilled three exploration wells in the Karabagh PSA signed in 1995: two wells found gas in the southeast portion of the structure and the third well indicated presence of oil in the western part of the structure. In 1999, the PSA was terminated due to the non-commercial discovery.

In May 2018, SOCAR Karabagh and Equinor signed a Risk Service Agreement related to development of Karabagh Oil Field in the Azerbaijan Sector of Caspian Sea. According to the agreement, they hold equal shares.

Russian assets

Equinor, which has earlier announced withdrawal from Russia amid the war in Ukraine, said it is too early to talk about the exit process.

“The attack on Ukraine has shocked us all. We are thinking of all those who are suffering as a result of the military action, and all those who are indirectly affected by the dramatic changes we now see unfolding. We have had a presence in Russia for more than 30 years. We followed the situation closely after the invasion and on 27 February we concluded that continued activity in Russia is untenable under the current circumstances.

We have employees from both Ukraine and Russia and are proud of how people from different backgrounds and nationalities cooperate with mutual respect as one team in Equinor. Our top priority in this difficult situation is the safety and security of our people. It is too early to be specific on the exit process,” said the company.