Azerbaijan’s state oil company SOCAR, along with other interested companies, signed a memorandum of understanding (MoU) on implementation of the Eurasia project, which envisages development of the Caspian Depression in Kazakhstan.
The memorandum was also signed by KMG Eurasia LLP, Agip Caspian Sea B.V., RN-Exploration LLC, CNPC International Ltd., and NEOS GeoSolutions, the Kazakh Energy Ministry said June on 21. From the Kazakh side, the memorandum was signed by the Energy Ministry and the Committee of Geology and Subsoil Use of the Kazakh Ministry for Investments and Development.
Talks will be held on key commercial, technical and contract conditions of the Eurasia project for signing a contract for geological exploration of the Caspian Depression in line with the legislation of Kazakhstan.
The Caspian Depression is a low-lying flatland region encompassing the northern part of the Caspian Sea, the largest enclosed body of water on Earth. Probable reserves in the Caspian Depression are estimated at 60 billion tons of oil. The project’s implementation is expected to provide the oil and gas industry of Kazakhstan with a stable source, letting avoid the decline in production, which may occur in 15-20 years, and it will also become the foundation of the country’s energy security.
The Eurasia project is supposed to consist of three stages. The estimated cost of the project is about $500 million.
SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.
The company includes such production associations as Azneft (the enterprises producing oil and gas onshore and offshore), Azerikimya (the chemical enterprises) and Azerigas (distributor of gas produced in the country), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.