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An oil company announces big job cut in Azerbaijan

29 December 2008 14:54 (UTC +04:00)

Shirvan. Alibey ZeynallÄ± - APA. Karasu Operating Company, dealing with exploration and development of PSA terms of onshore Mishovdag and Kelameddin onshore oilfield blocks located in Kura Valley in Azerbaijan, has announced unexpected job cuts, the employees who were made redundant told APA Bureau.
Rahil Khanmirzeyev, who lost his job as an engineer, said 75 workers and engineers were dismissed without any advance warning or severance pay.
The redundant claimed that they were told that the layoff is related to the low oil prices.
Alisattar Mehraliyev, a security manager at the company, said they would not give any oral explanation but ready to answer any written inquiry about the job cut.
The production-sharing agreement (PSA) for the Mishovdagh and Kelameddin fields was signed by the State Oil Company of the Azerbaijani Republic (SOCAR) and Nations Energy Corp.
SOCAR has a 15%-stake in the project and Karasu Operating Company holds 85% in the PSA, signed on September 12, 2000.
This is initially a 25-year PSA with the possibility of a five-year extension. The fields, located 120km south of Baku, first opened in 1960-1970. A total of 790 wells including 200 oil wells have been drilled at Mishovdagh, and 190 wells in Kelameddin. The Project provisions $500m in investment.