Karabakh block has a net acreage of 427 square kilometers and is rouled by an Exploration Development Production Sharing Agreement (EDPSA) with a 3 year duration for the exploration phase and 25 years for the production phase.

February 23, 1996 was the official starting date upon having set the Operating Company (CIPCO), whose share are the same of the J.V.: LukAgip 45%; Agip Azerbaijan B.V. 5%; Pennzoil 30%; Lukoil 12.5%; and SOCAR 7.5%.

The operations have been started within 1996 acquiring and processing some 426 square kilometers of 3D seismic, while at present the first exploratory well is under drilling.