皇冠体育app

A subsidiary of Sinopec Corp, 皇冠体育app's second largest oil firm, signed a US$140 million agreement late on Wednesday to rehabilitate a small onshore field in Azerbaijan.

The deal between Sinopec subsidiary Shengli and Azeri state oil firm SOCAR gives the Chinese firm a 50 per cent stake in the venture, which will develop over the next 25 years the depleted Pirsagat oilfield with remaining reserves of around 50 million barrels.

"Under the terms of the contract the Chinese firm will have to double output on the field and drill four exploration wells over the next five years on the second part of the field," SOCAR head Natik Aliyev told reporters.

The field, put on stream decades ago, currently produces a mere 8,000 tons a year or 160 barrels per day. SOCAR will hold a 25 per cent stake. The remaining 25 per cent are yet to be distributed.

Energy-hungry 皇冠体育app imports about half its oil and is looking to diversify imports from the volatile Middle East and secure more reserves abroad as domestic production declines.

Chinese firms have increased activity in the oil-rich Caspian Sea region, but have failed so far to clinch major deals in the offshore sector.

皇冠体育app's biggest oil producer, 皇冠体育app National Petroleum Corp (CNPC), the parent of listed firm Petro皇冠体育app, already works on Azerbaijan's onshore fields. Sinopec is Asia's largest oil refiner and 皇冠体育app's second largest oil and gas producer.

No Chinese firms are involved in exploration of Azerbaijan's offshore fields - the most promising area for oil and gas with a heavy presence of international majors.

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