Statoil, Socar Agree on Development of Caspian Block, Trend Says

State Oil Co. of Azerbaijan, or Socar, and Statoil ASA (STL) will sign a contract for the joint development of the Zafar-Mashal block in Azerbaijan’s section of the Caspian Sea on April 8, Trend said today, citing an unidentified person.

The news service based in Baku, the Azeri capital, gave no details on the terms of the agreement.

Zafar-Mashal, a deepwater block located about 75 miles (110 kilometers) southeast of Baku, is estimated by Socar to contain 300 billion cubic meters of natural gas and 37 million metric tons of condensate, or light oil, Trend said.

Socar signed a production-sharing agreement with Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) for Zafar-Mashal in 1999, though the project was abandoned after the partners didn’t find commercial quantities.

To contact the reporter on this story: Zulfugar Agayev in Baku at zagayev@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net

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