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Iran to launch exploration work at Alov field disputed with Azerbaijan

01 June 2009 14:29 (UTC +04:00)

Issues related to the Caspian Sea legal regime -â€“ which the five littoral states still have not finalized -- have been taken into consideration and there is no problem in this regard, the oil minister said on the sidelines of a contract signing ceremony in Tehran on Saturday, Tehran Times reported.

He noted that semisubmersible drilling rig will be constructed at the field.
Two Iranian companies are currently conducting feasibility studies for the exploratory well project, he added.

Note that the Alov Field is part of Araz-Alov-Sharg contract area which covers approximately 1,400 sq km. and is about 120 km southeast of Baku in depths between 300 and 800 meters.

Azerbaijan signed a production sharing agreement on July 1998 with BP (15%), Statoil (15%), SOCAR (40%), ExonMobil (15%), TPAO (10%) and Alberta Energy (5%).

On July 23, 2001, an Iranian warship and two jets forced a research vessel working on behalf of British Petroleum (BP)-Amoco in the Araz-Alov-Sharg.

The drilling of the first well was postponed until Azerbaijan and Iran establish the boundary line in the southern Caspian.