RWE signs Memorandum of understanding for exploration activities in the Republic of Azerbaijan

Thursday, Mar 11, 2010

The RWE Group expands its commitment in Azerbaijan. The company and the State Oil Company of the Republic of Azerbaijan (SOCAR) have signed a memorandum of understanding to draw up an agreement for the hydrocarbon exploration and development for the Nakhichevan perspective structure in the Azerbaijan sector of the Caspian Sea. The signing of the memorandum of understanding took place today in Baku.

The memorandum of understanding was signed by the President of SOCAR, Rovnag Abdullayev, and Dr. Jürgen Großmann, Chairman of the Board of Management of RWE AG. The “Exploration, Development and Production Sharing Agreement” (EDPSA) is to be drawn up in coming months. “Europe needs access to the immense oil and gas reserves in the Caspian Sea. As a result, RWE will also be able to grow in the upstream sector. In RWE Dea, we have the necessary expertise to do so,” Großmann said. In the long term, the gas deposits that may be sourced on account of the latest agreement between RWE and SOCAR could also contribute to the energy security of Europe.

The agreement relates to the Nakhichevan structure in the Caspian Sea, about 50 kilometers off the coast of Azerbaijan. “The signing of the memorandum of understanding is a first step towards RWE initiating upstream activities in Azerbaijan, and we look forward to constructive collaboration with SOCAR,” said Thomas Rappuhn, Chairman of the Management Board of RWE Dea AG.

Azerbaijan has extensive hydrocarbon resources. “Our intention is to gradually step up our activities in this country in the course of time,” Rappuhn explained. Last year, RWE Dea had already established the RWE Dea Azerbaijan Branch and opened an office in the capital, Baku.

Source: RWE