Azerbaijan’s state-controlled oil company SOCAR and Norway’s Statoil have reportedly signed an agreement for joint development of Zafar-Mashal field in the Caspian Sea.
Trend.az has reported the news, citing an unnamed source. The source told the Azeri news agency that the deal is expected to be signed on April 8 during an industry event in Baku.
The deepwater offshore exploration block, Zafar-Mashal, is situated approximately 110 kilometers south-east of Baku. The block is located in water depths ranging from about 550 meters to 900 meters and covers about 640 square kilometers.
Commercial hydrocabon discovery is yet to be made at Zafar-Mashal. ExxonMobil in 2003 drilled an exploration well at the project without encountering commercial hydrocarbons levels. The company, which used a Maersk Drilling’s semi- submersible rig, spent $150 million on the well, and decided against drilling the second one.