DEVELOPMENT OF CASPIAN SEA OIL FIELDS AT ISSUE IN TALKS WITH AZERBAIJAN

The Azerbaijani delegation leading discussions in London over development of three Caspian Sea oil fields is prepared to start again from scratch, if necessary, in search of the best deal.

Marat Manafov, an oil trader appointed by the government of Azerbaijan to conduct negotiations with eight western oil companies, told Oil & Gas Journal his brief is to prepare a report on the talks and draw up a summary contract if agreement is reached.

"If my report is favorable, the government will be ready to sign contracts and pass these on to parliament for ratification," Manafov said.

"If my report is unfavorable, we must look for other options. We have done our homework. We are prepared for every possible situation, whether a deal is agreed or not."

Manafov stressed his role is to help the government and State Oil Co. of Azerbaijan Republic to arrive at the best deal for the people of Azerbaijan.

Asked whether the government is prepared to invite other companies to bid for development of Chirag, Guneshli, and Azeri fields if current proposals are not satisfactory, Manafov said, "It is better to lose a few weeks rather than let the people of Azerbaijan down by losing billions of dollars."

Western companies involved in talks that have changed tack several times are British Petroleum plc, Unocal Corp., Pennzoil Co., Amoco Corp., Den norske stats oljeselskap AS, Ramco Energy Corp., McDermott International Inc., and Turkish Petroleum Corp. (OGJ, Aug. 30, Newsletter).

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