RWE AG (RWE) is seeking a foreign partner before signing a production-sharing deal with Azerbaijan’s state energy company on the Caspian’s Nakhchivan structure, the Turan news service reported, citing an unidentified official.
Germany’s second-biggest utility, which is responsible for the exploration costs, will be ready to sign an agreement with State Oil Co. of Azerbaijan, or Socar, after it finds a partner, Turan cited the official as saying. While Socar and RWE signed a memorandum of understanding on the structure in March 2010, they haven’t yet agreed a deal on exploration and production.
Nakhchivan, some 45 kilometers (28 miles) off the Azeri coast, was first explored by Exxon Mobil Corp. (XOM:US) in 2001 and 2002 and later abandoned after no fuel was found. The structure may hold 300 billion cubic meters of natural gas and 40 million metric tons of condensate, Socar estimates.
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