North Absheron Operating Company

North Absheron Operating Company
Private
Industry Petroleum
Founded 1997
Founder Amoco (30%),
SOCAR (20%),
Itochu (20%),
Unocal (25.5%),
Delta Oil Company (4.5%)
Headquarters Baku, Azerbaijan
Key people
 Thomas L. Klockenbrink (President)

North Absheron Operating Company (NAOC) was an international petroleum consortium based in Baku, Azerbaijan created to explore and develop the Dan Ulduzu and Ashrafi prospects in the Azerbaijani sector of the Caspian Sea. The company started its operations in 1997.[1] On March 7, 2000 the company stopped operations after the management of company considered the contract was not financially profitable.[2]

Overview

NAOC was in charge of managing operations for Dan Ulduzu-Ashrafi bloc. The consortium consisted of operator Amoco (acquired by BP) (30%) and partners SOCAR (20%), Itochu (20%), Unocal (25.5%), Delta Oil Company (4.5%).[3] The 25-year PSA agreement between Azerbaijani government and the companies was signed on December 14, 1996 and ratified by the Azerbaijani Parliament on February 25, 1997.[4]

The PSA area covered some 453 km2 was located 105 km (65 mi) northeast of Baku and are believed to contain reserves of approximately 1 billion barrels and 65 billion cm of gas.[4] The first exploration well Ashrafi-1 was drilled in February 1998. The results indicated 620,000 cm and 3,400 bbl per day.[1]

Although the estimated investment foreseen for the project was $2 billion, over the period of exploration operations the company spent only a total of $64.5 million.[5] The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in mid-1990s.[6]

Humanitarian projects in Azerbaijan

NAOC was also involved in charity and humanitarian projects in Azerbaijan. The consortium paid for construction of housing for 100 Azerbaijani families that became refugees and IDPs displaced from their homes during Nagorno-Karabakh War. The housing complex is located in Mingachevir city. Construction of five community centers for refugees were also funded by NAOC through Relief International. Partial funding was also extended to Counterpart International for assistance with supplies for orphanages.[1]

See also

References

  1. ↑ 1.0 1.1 1.2 Betty Blair (Summer 1998). "Dan Ulduzu and Ashrafi. No longer in operation after April 1999". Azerbaijan International. Retrieved 2010-06-29.
  2. ↑ "AFR Azərbaycanla enerji sahəsində əməkdaşlığın intensivləşdirilməsinin tərəfdarıdır" [Germany is interested in intensifying cooperation with Azerbaijan in the energy sector]. Interfax Azerbaijan. 2007-05-22. Retrieved 2010-06-29.
  3. ↑ "Wintershall Azərbaycanın dəniz yatağında kəşfiyyat quyusu qaza bilər" [Wintershall might start drilling in Azerbaijani oil field]. Trend News Agency. 2007-03-02. Retrieved 2010-06-29.
  4. ↑ 4.0 4.1 Betty Blair (Winter 1996). "Fourth Oil Consortium Signed. Dan Ulduzu and Ashrafi Prospects". Azerbaijan International. Retrieved 2010-06-28.
  5. ↑ "Нет худа без добра. "Ашрафи" нашло судьбу" [Good things happen. Ashrafi found its destiny]. Retrieved 2010-06-28.
  6. ↑ "Speech of Heydar Aliyev on PSA agreement with foreign investors". Retrieved 2010-06-28.

External links