) has inked a memorandum of understanding (MoU) with the State
Oil Company of the Republic of Azerbaijan - SOCAR.
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Per the agreement - signed by the company's chief executives in
Baku - both the companies will jointly explore and develop the
Zafar-Mashal structures in the Azerbaijani sector of the Caspian
The memorandum of understanding delineates the framework under
which the companies will exploit the opportunities, carry out
discussions and agree on key commercial principles and terms in
the 12-month period from the date of signing the memorandum.
Located 100 kilometers southeast of Baku and south of
) giant Shah Deniz gas-condensate field, the Zafar-Mashal
structures were earlier known as Blocks D-9 and D-38. The
structures lie in water depth of 550-900 meters. The area was
) by the government of Azerbaijan at the beginning of the last
decade. ExxonMobil was unsuccessful in its attempt to unearth any
hydrocarbons in spite of injecting 3D seismic.
Statoil has been present in Azerbaijan for the last 20 years.
With this new agreement, Statoil has strengthened its position as
well as its relation with the state-owned company. The agreement
is also in sync with the company's exploration strategy which
focuses on high impact prospects and expanding operations
Statoil has made several high impact discoveries that consist of
the finds in offshore Norway, Tanzania and Brazil. Further,
exploration with its Azerbaijan partners will confirm the
potential of the Caspian Sea.
Statoil carries a Zacks Rank #2 (short-term Buy rating). However,
the Zacks Ranked #1
Range Resources Corporation
) is expected to outperform the market over the next few months.