KNOC to buy Azeri Caspian stake

KNOC plans to buy most of Shell's interest in the undeveloped Inam oil block in the Caspian Sea off Azerbaijan.

Aug. 28, 2007

By OGJ editors
HOUSTON, Aug. 28 -- Korea National Oil Co. plans to buy most of Royal Dutch Shell PLC's interest in the undeveloped Inam oil block in the Caspian Sea off Azerbaijan, where operator BP PLC plans to drill a well later this year.

Press reports quoted Energy Ministry Natik Aliyev as saying that subject to approval by the government and the other partners, KNOC will acquire 20% interest in the project, leaving Shell with 5%. BP has 25%, and Azerbaijan's state Socar has 50%.

The Inam block covers 55,600 acres in 30 to 100 m of water 160 km south of Baku and 30 km off Azerbaijan (see map, OGJ, Nov. 20, 2000, p. 49).

BP predecessor Amoco Corp. signed the initial agreement with Socar in mid-1998 and in 2001 drilled the first exploratory well to TD 4,442 m. It stopped short of the planned TD of 5,025 m when the rig encountered high pressures.