Gains Stake in Inam
Shell EP International
has acquired a 25 percent interest in the Inam offshore block.
The share was bought from two former Inam shareholders - LASMO,
a U.K. oil exploration and production company, and Russia's Central
Fuel Caspian Sea Ltd, which both held 12.5% interests in the
project. This is the first project that Shell has signed with
Azerbaijan. Shell's representative in Baku is Mr. Rejep Aksulu.
LASMO's share was acquired when they bought out the British company,
Monument Oil and Gas, an original shareholder of the Inam project.
The transaction was completed March 9, 2000 and cost Shell approximately
$36 million. The Exploration, Development and Production Sharing
Agreement for the field was originally signed in London July
21, 1998. The remaining shares belong to BP Amoco (25%) and SOCAR
The Inam block, operated by BP Amoco, is located approximately
160 km south of Baku in water depths of 30 to 100 meters. SOCAR
experts believe that the 225 sq km concession may contain 1.4
billion barrels (more than 190 million metric tons) in recoverable
reserves of oil.
The partners in the project are jointly committed to 3D seismic
acquisition over the license area and the drilling of two firm
exploration wells. Shell's share of the exploration costs are
anticipated to be $30 to $50 million. To date, approximately
538 sq km of 3D seismic data have been acquired, and preparations
are underway for the drilling of the first well, which is anticipated
to spud during the third quarter of 2000.
(8.1) Spring 2000.
© Azerbaijan International 2000. All rights reserved.
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