Chevron and SOCAR have signed an Exploration and Production Sharing Agreement (EDPSA) to explore Azerbaijan's Absheron Offshore Block, a deep-water geologic structure approximately 36 km southeast off the coast of Azerbaijan. The ECPSA signing between Chevron and SOCAR took place in the White House on August 1, 1997, in the presence of the Vice President of the United States, Al Gore, and the President of Azerbaijan, Heydar Aliyev. Also present was Richard Matzke, President of Chevron Overseas Petroleum, who remarked that Chevron was honored to become a partner in Azerbaijan's reemergence as a significant player in the international oil industry.

Under the terms of the EDPSA, Chevron will be the operator in exploring the Absheron structure, which was delineated by seismic exploration beginning in the earlier surveys. Exploratory drilling is anticipated to begin in late 1999. Chevron will conduct a 3D seismic program to augment the data collected in the earlier surveys. Exploratory drilling is anticipated to begin in late 1999. Chevron holds a 30 percent interest in the block, along with SOCAR, 50 percent, and Total, 20 percent.

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