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Azerbaijan's Hydrocarbon Wealth, 2000
Laurent Ruseckas, Cambridge Energy Research Associates

Offshore and Onshore Oil Consortia, 2001
Julia Nanay, Director, The Petroleum Finance Company

Annual investment in Azerbaijan's oil and gas sector is expected to reach $2.0-$2.5 billion in 2001. This is a significant achievement, given that the total investment since 1996 is estimated by SOCAR to be $3.4 billion. Azerbaijan now has 22 active agreements with foreign oil companies, offshore and onshore. Currently, 32 companies from 14 countries are working in the country. In addition to Azerbaijan's national oil company, SOCAR, there are 12 companies working onshore from 6 countries and 23 companies offshore from 14 countries. This diversity of investors is unique to Azerbaijan, when compared to other countries in this region. The world's major oil companies - ExxonMobil, Shell, BP Amoco, TotalFinaElf and Chevron - all have important stakes in Azerbaijan's successful future as a major oil and gas producer.

Offshore Production Sharing Agreements February 2000

AIOC: Azerbaijan International Operating Co. Oil and Gas / First Foreign-Partnered PSC (Signed 09/94 Ratified by Parliament&effective 12/94) BP Amoco(34.137%), Unocal(10.0489), Statoil(8.563%), Itochu(3.92%), Lukoil(10%), TPAO(6.75%), ExxonMobil(8%), Devon(4.8175%), Ramco(2.0825%), Delta-Hess(1.68%), SOCAR(10%)

Abandoned/CIPCO: The Caspian International Petroleum Company Gas / Second Foreign-Partnered PSC Signed 11/95 Ratified & Effective 02/96: Karabakh Exploration, Development & Production PSC- 1/99 abandoned, no commercial volumes of gas or oil. Gov't has considered combining this with NAOC & re-tendering Devon(30%), LukAgip(50%), Lukoil(7.5%), SOCAR(7.5%)

Shah Deniz Gas, Condensate(gas condensate) / Third PSC Signed06/96 Ratified & Effective 10/96; Iranian Partner; No US presence BP Amoco(25.5%), Statoil(25.5%), TotalFina Elf(10%), LukAgip(10%), TPAO(9%), OIEC(10%), SOCAR(10%)

Abandoned/NAOC: North Absheron Operating Company Gas / Fourth Foreign-Partnered PSC Signed 12/96 Ratified 03/97, 3/99 abandoned project, no commercial volumes of oil or gas BP Amoco(30%), Unocal(25.5%), Delta-Hess(4.5%), Itochu(20%), SOCAR(20%)

Lankoran-Talysh Deniz Oil/Fifth Foreign-Partnered PSC Signed 01/97 Ratified & Effective 06/97 TotalFina Elf(55%), Wintershall(10%), OIEC(10%), SOCAR(25%)

Oguz Oil/One of the PSCs signed during President's Aliyev's visit to Washington, DC Signed 08/97 Ratified 11/97; Effective 12/97 ExxonMobil(50%), SOCAR(50%)

Absheron: for Zeinalabdin Tagiyev Structure Oil(but may be gas)/ one of 3 PSCs signed during President's Aliyev's visit to Washington, DC Signed 08/97 Ratified 11/97; Effective 12/97 Chevron(30%), TotalFina Elf(20%), SOCAR(50%)

Nakhichevan: for the D-3 Structure Oil(but may be gas)/ one of the PSCs signed during President's Aliyev's visit to Washington, DC Signed 08/97 Ratified 11/97; Effective 12/97 ExxonMobil(50%), SOCAR(50%)

Yalama(D-222) Oil/ 9th Foreign-Partnered PSC. Lukoil signed agreement in 07/97, with LukArco becoming official partner 2/98. Ratified 11/97 LUKARCO(60%)- split as Lukoil(32.4%) and Arco(27.6%), SOCAR(40%). With announcement of BP Amoco(Arco) merger, Arco pulls out 9/99 and Lukoil left with 60%. Lukoil may seek new partner.

Inam Oil/11th Foreign-Partnered PSC, signed July 21, 1998 during President Aliyev's UK visit. Ratified 12/98 BP Amoco(25%), Shell(25%)(Shell is buying shares of Lasmo(12.5%) & Central Fuel Company with Eurosov(12.5%)), SOCAR(50%)

Kyurdashi, Araz-Deniz, Kirgan-Deniz Oil/10th Foreign-Partnered PSC Signed June 1, 1998 in Baku Ratified 07/98 Agip(25%), Mitsui(15%), TPAO(5%), Repsol(5%), SOCAR(50%)

Alov (D-13/15/19 or Sharg, Alov, Araz, contract area) Oil/12th Foreign-Partnered PSC, Signed July 21, 1998 during President Aliyev's UK visit. Ratified 12/98 BP Amoco(15%), Statoil(15%), TPAO(10%), Alberta Energy Co.- AEC(5%), SOCAR(40%)

Japan Azerbaijan Oil Company(JAOC) for Yanan-Tava, Ateshgakh, Mughan-Deniz Oil/ 13th Foreign-Partnered PSC, Signed Dec. 25, 1998 in Baku. First with all Japanese Partners. Japex(22.5%), Inpex(12.5%),Teikoku(7.5%), Itochu(7.5%) SOCAR(50%) (After ratification, JNOC will take 40-60% of Japanese co. shares)

Savalan, Dalga, Lerik-Deniz, Janub (Blocks D-43/D-44/D-73) Oil/14th Foreign-Partnered PSC, signed April 27, 1999, during Pres. Aliyev's US NATO summit visit Exxon Mobil(30%), Socar(50%), still to be awarded(20%)

Zafar/Mashal (Blocks D-9 and D-38) Oil/15th Foreign-Partnered PSC, signed April 27, 1999, during President Aliyev's US NATO summit visit. Conoco added during President Aliyev's 2/2000 visit to US. ExxonMobil(%30), Conoco(20%), Socar(50%).

Kursangi- Garabakhli Signed 15/12/98 Frontera Resources(30%), Delta-Hess(20%), SOCAR(50%)

West Absheron PSC Signed 08/94(not ratified)
Socar 100%(01/2000 reverted back to Socar)

US' BMB unable to meet contract requirements and turned acreage back to Socar.
Partnered with UTP in 2/98 and after UTP acquired by ARCO in 5/98,
contract went to ARCO. ARCO quit project after BP Amoco merger announced.

Muradkhanli/Zafarli/Zardap PSC signed 7/98; ratified 11/98 RAMCO(50%), SOCAR(50%)     Southwest Gobustan PSC signed 6/98; ratified 11/98 Commonwealth Oil and Gas(80%); SOCAR(20%)(partnered with UTP for 40%, but UTP was acquired by ARCO. Ehen ARCO merger announced with BP Amoco, ARCO dropped out in 5/99)     Padar-Kharami PSC signed 4/99 during Pres. Aliyev's US visit Moncrief Oil(64%); ISR(16%); Socar(20%)     Four onshore JVs will be converted to PSC's 2 are with Turkish Partners: Turkish companies are Petholding in AzPetoil (Mishovdag, Kalameddin) signed in 1992 and Attila Dogan in Anshad Petrol (Neftchala, Khilly, Babazana) singed in 1993. 1 is with a German partner: German Company is Grunewald in AzGeroil(Ramani) signed in 1995. 1 is with a British partner: British company is Whitehall in Shirvanoil(Kurovdag signed in 1997) Turkish AzPetoil may be amalgamated with Moncrief/ISR's Padar-Kharami