CNPC unit to expand investment in Azerbaijan's Kursangi field

Feb. 14, 2003
A unit of China National Petroleum Corp. Ltd. plans to invest $80 million to rehabilitate Kursangi oil field 100 km southwest of Baku the Chinese ambassador to Azerbaijan, told Caspian News Agency.

By OGJ editors

HOUSTON, Feb. 14 -- A unit of China National Petroleum Corp. Ltd. plans to invest $80 million to rehabilitate Kursangi oil field 100 km southwest of Baku, Zhang Xiyun, the Chinese ambassador to Azerbaijan, told Caspian News Agency.

CNPC is expanding its initial investment after becoming a member in the rehabilitation project with last year's purchase of the European Bank for Reconstruction and Development's 30% holdings in Kursangi and Karabagli fields (OGJ, Feb. 18, 2002, p. 31).

From Delta Hess Inc., CNPC brought a 50% share in CNPC's Salyan Oil Ltd. in Azerbaijan. The State Oil Co. of the Azerbaijan Republic (SOCAR) owns the other 50%. Delta Hess is a joint venture owned by Delta Oil Central Asia Ltd. and Amerada Hess Corp.

CNPC already reached a preliminary agreement with the Azerbaijani government. The Azerbaijani presidential administration has all the papers, and the parties await a presidential decree on joint venture terms.

In an interview with the Turan news agency, SOCAR President Natiq Aliyev confirmed CNPC's plans to expand its business through the rehabilitation of old deposits in Azerbaijan.

"Our task is to ensure that both the development company and the owner of the field benefit from the deal," Aliyev said.