Lukoil-SOCAR wins Zykh-Govsany project

Lukoil and the State Oil Co. of Azerbaijani Republic have signed a 50-50 rehabilitation, prospecting, and production-sharing agreement for a 128-sq km license area on the Apsheron Peninsula, Azerbaijan. The license includes the Zykh and Govsany fields. A preliminary feasibility study prepared by the Azeri research institute Gipromorneftegaz estimates the oil fields could contain up to 20 million tonnes of oil.


Lukoil and the State Oil Co. of Azerbaijani Republic have signed a 50-50 rehabilitation, prospecting, and production-sharing agreement for a 128-sq km license area on the Apsheron Peninsula, Azerbaijan. The license includes the Zykh and Govsany fields. A preliminary feasibility study prepared by the Azeri research institute Gipromorneftegaz estimates the oil fields could contain up to 20 million tonnes of oil.

The first stage of the project calls for another geology and geophysics survey, interpretation of newly acquired data, and the drilling of two exploration and appraisal wells. Estimated total capital expenditures for the this phase of the project are about $250 million.

Russian Charge D'Affaires Alexander Prischepov attended the signing ceremony. The Russian diplomat noted the agreement furthers economic cooperation between Russia and Azerbaijan.

More in Home