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Thursday, 29 March 2018 13:30

Nobel Upstream enters into a contract with SOCAR

Nobel Upstream enters into a contract with SOCAR

Nobel Upstream, an independent UK-based oil and gas exploration and production company has announced that it has entered into a Risk Service Agreement, and other necessary implementing agreements, with the State Oil Company of the Azerbaijan Republic (SOCAR) governing the exploration, appraisal and development of the giant scale Umid-Babek gas condensate field located in the Azerbaijan sector of the Caspian Sea, Caspian Energy News ( reports with reference

Larry Bates, CEO of Nobel Upstream commented: “We are pleased to have achieved this milestone together with our partner SOCAR and look forward to continuing the appraisal and development of the world-class Umid-Babek field, which will provide a stable and long-term gas supply for Azerbaijan and other European markets.” 

The RSA was ratified by the Azerbaijan Milli Majlis (parliament) and signed into law by the President of the Azerbaijan Republic on 2 May 2017. The RSA is an innovative structure and Azerbaijan’s first RSA in which SOCAR will play the key role. Most notably, the RSA retains the essential legal and commercial features of the successful production sharing agreements (PSA) entered into by major international oil companies, including the BP-operated ACG and Shah Deniz projects and the Total-operated Absheron development.

Nobel Upstream and SOCAR have established the Umid, Babek Exploration and Production company, which will serve as the contractor under the RSA. Nobel Upstream holds a twenty per cent (20%) interest in the company.

We would like to note that the Umid-Babek gas condensate field likely contains in excess of 600 billion cubic meters (BCM) of gas reserves and resources and 800 million barrels of condensate and is expected to supply some 3-4bcm per year initially into the Azerbaijan market and later to European markets through the Southern Gas Corridor (SCP, TANAP and TAP gas pipelines) from Azerbaijan, through Georgia, Turkey, and into Italy. The Umid-Babek field was discovered by SOCAR and Nobel Upstream in 2010. Appraisal drilling has continued on the Umid portion of the field, while 3D seismic acquisition has been completed over Babek in advance of drilling.

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Person in charge of the newsline: Fidan Isayeva

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