State Oil Co. of Azerbaijan and Vietnam National Oil and Gas Group signed a draft production- sharing agreement setting out the main terms of a partnership between the two companies in an onshore block in Azerbaijan.
The agreement was signed in the Azerbaijan capital of Baku on Friday, the Azeri producer known as Socar said on its website. The company and partner PetroVietnam will jointly restore, explore and develop the Muradxanli-Cafarli-Zardab block.
The block, discovered in 1971, is estimated to contain 1.8 million metric tons of oil and 36 million cubic meters of natural gas, according to Socar.
Azerbaijan, the third-largest oil producer in the former Soviet Union after Russia and Kazakhstan, pumped 45.6 million tons of oil and 25.8 billion cubic meters of gas last year.