Azerbaijani state oil company SOCAR, along with other interested companies, signed a memorandum of understanding on implementation of the Eurasia project, which envisages development of the Caspian Depression in Kazakhstan, the Kazakh Energy Ministry said June 21.
The memorandum was also signed by KMG Eurasia LLP, Agip Caspian Sea B.V., RN-Exploration LLC, CNPC International Ltd., and NEOS GeoSolutions. 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 three stages is about $500 million.