Starting from 1 May 2015, State Oil Company of Azerbaijan Republic (SOCAR) has taken over as operator of Azerbaijan Gas Supply company (AGSC) and South Caucasus Pipeline Company (SCPC). The replacement was arranged between Norway’s “Statoil” and Malaysia’s “Petronas”. The transaction involving the sale of Statoil’s 15.5% participating interest in the “Shah Deniz” PSA, 15.5% participating interest in the South Caucasus Pipeline Company and 12.4% participating interest in Azerbaijan Gas Supply Company was completed. 62
Binagadi, Girmaki, Chakhnaglar, Sulutepe, Masazir, Fatmai, Shabandagh and Sianshor(production stage)
29.09.2004
Azen Oyl Company B.V.
75.0
75.0
SOCAR
25.0
25.0
Block of south west “Gobustan”(production stage)
02.06.1998
Commonwealth
80.0
40.0
Gobustan Neft LLC
20.0
-
Gold and silver extraction67 In recent years, the discovery of gold deposits has become an important geological discovery. Gizilbulag gold-copper-gold deposits of pyrites located in Karabakh (currently under Armenian occupation). The quartz gold deposits were found by geological expeditions in Vejneli in Zangilan, Aghyurd, Piyasbashi, Shakardara, Ordubad and Aghduzdag - Dalidagh.
Figure 6: Map of gold and silver deposits
On 20 August 1997, contract on exploration, use, and share production of Gadabay, Gosha, Ordubad group (Piyazbashi, Agturd, Shakardara, Kalaki), Soyudlu, Gizilbulag, and Vejnali perspective gold deposits was signed between the “Azergizil” State Company and “R.V. Investment Group Services” in accordance with the decree of the President of Azerbaijan Republic “on exploration and use of several gold deposits of Azerbaijan Republic” dated 5 February 1996. In 2000, according to the decree of the President of Azerbaijan Republic "Azerqızıl" was abolished and the company, was transferred to the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan. The share of the Government of Azerbaijan Republic of total profit on Gadabay gold-copper deposits in accordance with relevant PSA is 51%, the remaining 49% belongs to R.V.Investment Group Services Company, but is managed by Azerbaijan International Mineral Resources Operating Company.68
The amounts of gold and silver reserves of Azerbaijan as approved for the year end of 2015 are reflected in the following table:
Table 9: Gold and silver resources
Significant Exploration Activities: With the completion of the Shafag-Asiman 3D seismic dataset interpretation earlier in 2015, work has commenced on planning for the first exploration well.
Planning has also commenced for a 3D seismic acquisition programme for the Shallow Water Absheron Peninsula (SWAP) contract area following ratification of the production sharing agreement in May 2015. The 2D seismic survey in the SWAP contract area was safely completed in December 2015.