On August 1, 1997, Chevron and
SOCAR signed a Production Sharing Agreement (PSA) for the Absheron
block in the Azerbaijan sector of the Caspian Sea. The ceremony
took place in the White House, Washington DC, in the presence
of Azerbaijan's President Heydar Aliyev and U.S. Vice President
Al Gore. The project was ratified by parliament on November 11,
1997, and became effective on December 5, 1997.
The Absheron prospect, a deep-water
geologic structure approximately 60 km southeast off the coast
of Azerbaijan is potentially one of the largest hydrocarbon structures
in the Caspian basin. Chevron (30%) is the operator in the consortium
of two other companies-Total (20%) from France and Azerbaijan's
national oil company, SOCAR (50%).