U.S. Contracts Signed
new oil contracts were signed in Washington, D.C. on April 27,
1999, during President Aliyev's official visit to the U.S. They
include the following:
ExxonMobil Exploration and Production Caspian
Sea Limited is the operator of the Zafar-Mashal block in the
Azerbaijan sector of the Caspian Sea. President of ExxonMobil
Ventures K. Terry Koonce signed the contract along with Natig
Aliyev, President of SOCAR.
ExxonMobil has a 30 percent interest in the block, SOCAR holds
a 50 percent interest and the remaining 20 percent has yet to
be awarded. The deepwater offshore exploration block includes
both the Zafar and Mashal prospective structures (previously
known as D-9 and D-38) and is located about 75 miles (110 km)
southeast of Baku. It is located in water depths ranging from
feet (550 m) to 2,900 feet (900 m) and covers about 250 square
miles (640 sq km).
ExxonMobil's President Terry Koonce confirms the contract
for Zafar-Mashal with Natig Aliyev, SOCAR's President. All contracts
were signed on April 27, 1999 in the U.S. Senate Building.
ExxonMobil affiliates in Azerbaijan also own interest in the
Nakhchivan exploration block, the Araz-Alov-Sharg exploration
block and the Azeri, Chirag and deepwater Gunashli fields complex.
ExxonMobil Azerbaijan Ltd. is a member of the AIOC consortium.
The company is active in providing support for education and
humanitarian projects in Azerbaijan.
Note: Conoco now holds 20% share in Zafar-Mashal as of
is the operator for the Production Sharing Agreement (PSA) for
exploration of an offshore block in the Azerbaijan sector of
the Caspian Sea. ExxonMobil's Executive Vice President Bill Scoggins
signed the contract along with Natig Aliyev, President of SOCAR
(State Oil Company of the Azerbaijan Republic).
The block contains the Savalan, Dalga, Lerik-Daniz and Janub
prospects, covering an area of
approximately 316 square miles (850 sq km). ExxonMobil has a
30 percent interest in the block, SOCAR holds a 50 percent interest,
and the remaining 20 percent has yet to be awarded. The PSA calls
for a seismic program and two exploration wells to be completed
over the first three years of the agreement.
Bill Scoggins, ExxonMobil's Executive Vice President President
signs with Ilham Aliyev, Executive Vice President of SOCAR for
Moncrief Oil International, Inc. (MOIL) of Texas, through its
affiliate, Kura Valley Development Company, Ltd., signed an Exploration
and Development Production Sharing Agreement (EDPSA) for the
Padar and adjacent onshore area in the Lower Kura River Valley.
The area is located 90 km southwest of Baku and encompasses approximately
1,050 sq km with a 40 percent relinquishment provision after
1 year. The minimum work program consists of three exploration
wells over the course of three years. Ownership in the block
consists of MOIL and its partner ISR of Azerbaijan (80%), and
SOCAR (20%), with MOIL as the operator. The EDPSA block contains
the Padar structure, Kharami structures, as well as a number
of other geologic features of interest.
Contract was signed by SOCAR President Natig Aliyev and Moncrief
Oil International, Inc. Chairman Richard W. Moncrief.Moncrief
anticipates assuming operations in the block in the fall of 1999
upon ratification of the contract by Azerbaijan's parliament.
Azeri experts estimate potential recoverable reserves to be up
to 100 million tons. If successful, total capital expenditures
for the development of the area are in the range of $500 million
to $1 billion over the life of the project.
Richard Moncrief of Moncrief Oil with Natig Aliyev of SOCAR
at the Signing Ceremony for Padar.
Moncrief Oil is a privately owned family concern which has been
producing oil and gas in the U.S. for over 60 years and is headquartered
in Fort Worth, Texas. Moncrief has discovered and played a prominent
role in the development of numerous major oilfields in Texas,
Louisiana, Alaska, Oklahoma, New Mexico, Utah, California, Florida,
California, Montana, Wyoming, North Dakota, Alabama and Mississippi.
© Azerbaijan International 1999. All rights reserved.
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AI 7.2 (Summer 99)
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