Statoil Extends Exploration off Azerbaijan

Norwegian energy company Statoil has deepened involvment in offshore exploration in Azerbaijan.

The company's chief executive officer, Helge Lund, signed a memorandum of understanding (MoU) while on a visit to the Caspian country, to develop the Zafar-Mashal block with the national hydrocarbon company.

The agreement is with the State Oil Company of the Azerbaijan Republic, Socar. 

"This MoU reflects our long-term commitment to Azerbaijan," Lund said in a statement. Lund was also received by President Ilham Aliyev.

Statoil gave no indication of the reserve potential in Zafar-Mashal, which lies 100kms offshore of the capital, Baku. Experts say it could contain around 1 trillion cubic feet of natural gas reserves.

UPI notes that Statoil has worked offshore Azerbaijan for more than 20 years. It holds a 25.% interest in the Shah Deniz II project and a 42.5% share in the planned Trans Adriatic Pipeline.