The Turkish Pet Oil company has invested USD 178 million in the exploration of the Kalamaddin-Mishovdag onshore fields in Azerbaijan, said the president of the company, Guntekin Koksal, in the opening ceremony of the Pet Oil’s office, a subsidiary of Pet Holding, in Baku.
According to Koksal, the joint production sharing (JPS) agreement for the exploration of the oil fields, which is a much better agreement than the earlier joint venture one, has led to a 10 per cent increase in production. He added the production will be increased by 2 to 3 times in the near future.
The contract on the Kalamaddin-Mishovdag fields based on the JPS agreement was signed on 12 September 2000, in Washington and the share of participants are: SOCAR, 15 per cent; the American Moncrief Oil as operator 49.3 per cent; and Pet Oil, 35.7 per cent. According to information received from the project’s operator, the preliminary investment for the implementation of the project will be 170m dollars. The contract is for 25 years and it is expected that more that 50m t of oil will be extracted from the fields.