On Tuesday, the plenary session of the Milli Majlis (parliament) of Azerbaijan ratified the Risk Service Contract for the rehabilitation and development of a block of onshore oil fields in the Absheron, including the Buzovna-Mashtaga, Gala, and Zira fields.
The Risk Service Contract was signed on December 14, 2021 between SOCAR Upstream (a subsidiary of SOCAR) and GL International LTD.
SOCAR Vice President for Field Development Yashar Latifov said at a parliamentary session that when developing fields that require significant funds to maintain stable production and increase production, but are not of interest from the point of view of investments within the framework of SOCAR’s overall strategy, preference is given to developing them with the involvement of contractors under risk-service contracts.
According to SOCAR Upstream, in the first 24 months, the work programs under the contract will be implemented as part of a transition period, after which a 25-year production period will begin.
Other details of the contract are not given. The onshore block of the Buzovna-Mashtaga, Gala and Zira oil fields was previously developed by the G.Z. Tagiev. The deposits were discovered in the 30s of the XX century.