BAKU, Azerbaijan, June 3 (UPI) -- Azerbaijan signed a production-sharing agreement with a German company to develop oil fields in the Absheron Peninsula, executives said in Baku.
The State Oil Co. of Azerbaijan Republic signed a deal with German company Lanser for rehabilitation of the Balakhani, Sabunchi, Ramana and Kurdakhani oil fields. SOCAR takes a 25-percent stake in the fields while Lanser takes the remaining 75 percent, Azeri news agency News.Az report.
Lanser pays Azerbaijan $2 million in a signing bonus and another $2 million once production in the Absheron region doubles.
"We realize that the Absheron Peninsula has special significance for Azerbaijan from the ecological point of view," said Lanser chief Lothar Tauschke. "In this context we will pay special attention to the rehabilitation of these deposits."
The German company has until August to submit its plans to SOCAR. Production volumes from the Absheron region will be specified at that time, SOCAR officials said.
