What stands behind new oil contract in Azerbaijan

Baku, Azerbaijan, Apr. 14 By Maksim Tsurkov – Trend: Despite the conditions formed in the world, when low oil prices force many companies to refuse to participate in oil and gas projects, reduce investment and production volumes, Azerbaijan continues to invest in the development of the mining sector. In fact, it is an investment in the future, as projected oil and gas reserves in the country are very high, and the mining, which will provide large amounts of hydrocarbons in the future, will bring Azerbaijan huge profits. Prospects of Azerbaijani oil and gas reserves also confirm the fact that it will be possible to attract the big players of the industry to the process of geological exploration and development. In this case, the matter rests in the BP company. The Milli Majlis (Parliament) of Azerbaijan has ratified a PSA (production sharing agreement) contract on holding joint geological exploration work on potentially promising structures located on the shallow part around the Absheron peninsula in the Azerbaijani sector of the Caspian Sea Apr.14. Participation of this largest oil and gas corporation in the mentioned sector of the Azerbaijani economy increases the probability of successful exploration and development of fields in the shallow waters of Absheron. In addition, in accordance with the contract, BP undertakes to cover free of charge the costs of training for local staff worth up to $200,000. It is quite obvious that two such experienced companies as SOCAR and BP would not engage in projects that do not carry any benefit, and therefore one can safely say that a new period starts in the history of Azerbaijani oil. --- Maksim Tsurkov is Trend Agency’s staff journalist, follow him on Twitter: @MaksimTsurkov Follow us on Twitter @TRENDNewsAgency