Large scale Oil Contract to Be Sold

BAKU (Itar-Tass)–President Gaidar Aliyev of Azerbaijan virtually sanctioned the signing of yet another large-scale contract–which provides for the development of Yavan Tapa–Atashgyakh and Mugan Deniz oil deposits–three promising oil fields located in shallow water in the southern Caspian–not far from the Kura river mouth.

An intention to this effect was expressed by the Head of State on Wednesday when he was receiving Morofushi Minoru–President of the Japanese Itochu Corporation – one of three Japanese companies which–together with an Indonesian firm intend to become parties to the project–which promises in prospect the production of about 100 million tons of oil. The cost of implementing the project is estimated at $400 million.

All these companies are part of the 11th foreign consortium founded for the development of the Caspian energy resources. Participants in the consortium have already signed a treaty with the State Oil Company of Azerbaijan on basic principles of agreement. This procedure–as a rule–precedes the signing of an oil contract.

While in Baku–Minoru put forward a number of proposals which are aimed at establishing an industrial infrastructure in the republic–at introducing the newest equipment and technology and at modernizing one of Baku-based oil-processing plants.

Besides–the president of Itochu Corp. offered investmen’s to finance the future construction of the main export-oriented pipeline–which is intended to ensure the transportation of Azerbaijan oil to world markets by the turn of the century.

EDITOR’S NOTE: In yesterday’s Asbarez OnLine–we inadvertently wrote that Armenia beat Northern Ireland. Armenia beat Albania last Saturday. We regret the error.

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