No longer in operation
after February 23, 1999.
James A. Tilley, President
CIPCO announced on January 21,
1999 that they intend to cease operation on February 23, 1999.
"We found gas, we found oil and we found gas condensate
-- but we didn't find enough of it," CIPCO President James
Tilley said. "There was quite a gap between what we found
and what would be commercial, We needed roughly to find twice
CIPCO had invested some 100 million dollars (86 million euros)
to drill three exploration wells in the Karabakh off-shore oil
structure, located some 100 kilometers (62 miles) northeast of
Baku, but discovered mostly gas. This was the second international
contract signed. It is the first one to stop operations.The consortium
had thought the structure contained six to seven million tons
of recoverable oil reserves, 20-21 million tons of total reserves
and 23 billion cubic meters of gas.
Signed November 10, 1995
Ratified February 13, 1996
Map: Click to enlarge
The Caspian International Petroleum Company (CIPCO) is the
joint operating company formed to explore and develop the Karabakh
Prospect which is located about 125 kilometers east of Baku in
the Azerbaijan sector of the Caspian Sea. The contractor parties
in CIPCO are LUKoil (12.5%), Agip (5%), the joint-venture company
LUKAgip (45%), Pennzoil (30%) and SOCAR (7.5%).
CIPCO's day-to-day operations
were conducted by a management team which reported to a committee
of shareholder representatives. Positions rotated between the
shareholder companies every three years.
The first exploration well (KPS-1),
drilled to a depth of 3,840 meters, revealed a gas accumulation,
the extent of which was evaluated in the second and third wells.
The second well (KPS-2), begun in April 1998, is located 5.5
kilometers northwest of the first well and was drilled to a depth
of approximately 4,000 meters.
Drilling was carried out by
the Caspian Drilling Company (CDC) on their semi-submersible
rig, Dada Gorgud. The drilling process, including testing,
Old Intourist Hotel
63 Neftchilar Prospect, Baku
Tel: (99-412) 92-40-27
From Azerbaijan International (6.2) Summer 1998.
© Azerbaijan International 1998. All rights reserved.
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