President approves agreement on exploration, development and production sharing in Guba-Caspian region

Azerbaijani President Ilham Aliyev has signed into law the agreement on the exploration, development and production sharing of a territory covering parts of the Guba, Gusar, Shabran, Siyazan and Khizi districts.

The Milli Majlis ratified the law on September 30.

The agreement on a prospective onshore block in the Guba-Caspian region was signed on February 18 by the State Oil Company of Azerbaijan (SOCAR), Gran Tierra Energy (Azerbaijan) GmbH and SOCAR Guba-Caspian LLC.

Under the agreement, Gran Tierra Energy Inc. will serve as the project operator, holding a 65% stake. The exploration programme includes gravity data acquisition, 3D seismic surveys and exploratory drilling to assess the hydrocarbon potential of the contract area.