Agreement on the Rehabilitation, Development, and Production Sharing for the Block Including the Zigh and Hovsan Fields in the Azerbaijan Republic
On November 3, 2006 SOCAR, "Rusneft Absheron Investments Limited" and the SOCAR Ally Oil Company signed a joint agreement for the rehabilitation, development, and production sharing for the block including the Zigh and Hovsan Fields. The agreement went into effect on October 8, 2007. The Agreement covers an area of 68.81 km2.
Oil and gas operations have been conducted in Zigh and Hovsan oilfields on the south coast of the Absheron Peninsula.
The Hovsan oilfield is located 20 km E of Baku, in the southern part of the Absheron Peninsula. The field was commissioned in 1948. As of January 1, 2011, 73 wells had been drilled in the field and 3.3 million tons of oil was produced.
The Zigh oilfield is located in NE of Baku. The field was commissioned from 1935. As of January 1, 2011, 240 wells had been drilled in the field. By that time 6.3 million tons of oil had been extracted.