RWE in Agreement to Develop Caspian Field

Azerbaijan and German utility RWE have agreed on the main commercial principles of a deal to explore the Nakhchivan gas and oil deposit in the Caspian Sea.

'Works on preparation of a contract are currently underway,' said Rovnag Abdullayev, President of the State Oil Company of Azerbaijan Republic (SOCAR).

The two companies signed a memorandum on understanding last March.

The Nakhchivan deposit is located 90 km (55 miles) south of the Azeri capital, Baku, at a depth of 400-600 metres below the surface of the Caspian Sea. It was first discovered by Azeri oil explorers in 1960 and prepared for drilling as recently as 1994.

According to preliminary government estimates, Nakhchivan may contain up to 300 billion cubic metres of gas.

Source: Wireservices