North Absheron Operating Company
Encyclopedia
North Absheron Operating Company (NAOC) was an international petroleum
consortium based in Baku
, Azerbaijan
created to explore and develop the Dan Ulduzu
and Ashrafi
prospects in the Azerbaijani sector of the Caspian Sea
. The company started its operations in 1997. On March 7, 2000 the company stopped operations after the management of company considered the contract was not financially profitable.
(acquired by BP
) (30%) and partners SOCAR (20%), Itochu
(20%), Unocal (25.5%), Delta Oil Company (4.5%). The 25-year PSA
agreement between Azerbaijani government and the companies was signed on December 14, 1996 and ratified by the Azerbaijani Parliament
on February 25, 1997.
The PSA area covered some 453 km2 was located 105 km (65.2 mi) northeast of Baku and are believed to contain reserves of approximately 1 billion barrels and 65 billion cm of gas. The first exploration well Ashrafi-1 was drilled in February 1998. The results indicated 620,000 cm and 3,400 bbl per day.
Although the estimated investment foreseen for the project was $2 billion, over the period of exploration operations the company spent only a total of $64.5 million. The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in mid-1990s.
s displaced from their homes during Nagorno-Karabakh War
. The housing complex is located in Mingachevir
city. Construction of five community centers for refugees were also funded by NAOC through Relief International. Partial funding was also extended to Counterpart International
for assistance with supplies for orphanages.
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
consortium based in Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
, Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
created to explore and develop the Dan Ulduzu
Dan Ulduzu field
Dan Ulduzu field is an oil and gas field located northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago...
and Ashrafi
Ashrafi field
Ashrafi field is an oil and gas field located northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago.-Dan Ulduzu-Ashrafi bloc:...
prospects in the Azerbaijani sector of the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
. The company started its operations in 1997. On March 7, 2000 the company stopped operations after the management of company considered the contract was not financially profitable.
Overview
NAOC was in charge of managing operations for Dan Ulduzu-Ashrafi bloc. The consortium consisted of operator AmocoAmoco
Amoco Corporation, originally Standard Oil Company , was a global chemical and oil company, founded in 1889 around a refinery located in Whiting, Indiana, United States....
(acquired by BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
) (30%) and partners SOCAR (20%), Itochu
ITOCHU
, until 1992 "C. Itoh" in English, is a Japanese general trading concern based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It has a common origin with Marubeni Corporation. Itochu is a Fortune 500 company.-History:...
(20%), Unocal (25.5%), Delta Oil Company (4.5%). The 25-year PSA
Production sharing agreement
Production sharing agreements are a common type of contract signed between a government and a resource extraction company concerning how much of the resource extracted from the country each will receive....
agreement between Azerbaijani government and the companies was signed on December 14, 1996 and ratified by the Azerbaijani Parliament
National Assembly of Azerbaijan
The National Assembly , also transliterated as Milli Majlis is the legislative branch of government in Azerbaijan. The unicameral National Assembly has 125 deputies: previously 100 members were elected for five-year terms in single-seat constituencies and 25 were members elected by proportional...
on February 25, 1997.
The PSA area covered some 453 km2 was located 105 km (65.2 mi) northeast of Baku and are believed to contain reserves of approximately 1 billion barrels and 65 billion cm of gas. The first exploration well Ashrafi-1 was drilled in February 1998. The results indicated 620,000 cm and 3,400 bbl per day.
Although the estimated investment foreseen for the project was $2 billion, over the period of exploration operations the company spent only a total of $64.5 million. The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in mid-1990s.
Humanitarian projects in Azerbaijan
NAOC was also involved in charity and humanitarian projects in Azerbaijan. The consortium paid for construction of housing for 100 Azerbaijani families that became refugees and IDPIDP
IDP may refer to:* Identity Provider , the source for validating user identity in a federated identity system.* IDP Education, an educational organization based in Australia* Independence code for Independence, Missouri, United States...
s displaced from their homes during Nagorno-Karabakh War
Nagorno-Karabakh War
The Nagorno-Karabakh War was an armed conflict that took place from February 1988 to May 1994, in the small enclave of Nagorno-Karabakh in southwestern Azerbaijan, between the majority ethnic Armenians of Nagorno-Karabakh backed by the Republic of Armenia, and the Republic of Azerbaijan...
. The housing complex is located in Mingachevir
Mingachevir
Mingachevir , sometimes spelled Mingecevir, is the fourth-biggest city in Azerbaijan with a population of about 100,000. It is known as city of lights because of its hydroelectric power station on the Kur River, which splits the city in half....
city. Construction of five community centers for refugees were also funded by NAOC through Relief International. Partial funding was also extended to Counterpart International
Counterpart International
Counterpart International is a non-profit organization headquartered in Arlington, Virginia. The mission of Counterpart is: Working in partnership to empower people, communities and institutions to drive and sustain their own development...
for assistance with supplies for orphanages.
See also
- Dan Ulduzu fieldDan Ulduzu fieldDan Ulduzu field is an oil and gas field located northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago...
- Ashrafi fieldAshrafi fieldAshrafi field is an oil and gas field located northeast of Baku, Azerbaijan, west of Karabakh field, in the northern section of Absheron archipelago.-Dan Ulduzu-Ashrafi bloc:...
- Azeri-Chirag-GuneshliAzeri-Chirag-GuneshliAzeri–Chirag–Guneshli is a large complex of oil fields in the Caspian Sea, about off the coast of Azerbaijan. An overall estimated area of the field is . It is operated by a BP-led consortium. The ACG fields have estimated recoverable reserves of about of petroleum...
- SOCAR