The multinational Caspian International Petroleum Company (CIPCO), a consortium led by the U.S. company Pennzoil, has struck oil at the depth of 3,150 meters while drilling a third exploratory well at Azerbaijan’s offshore “Karabakh” field. Drilling will continue for a further 300 meters, probably turning up more oil. CIPCO had been on the verge of terminating the project after the first two exploratory wells failed to strike oil. The contract provided for the drilling of three exploratory wells, and Azerbaijan insisted that the third be drilled. Azerbaijan’s State Oil Company is said to have disagreed with the choice of the first two locations and to have recommended the third (Journal of Commerce, October 26).
CIPCO’s initial failure became an argument in the hands of opponents of the Baku-Ceyhan pipeline, who maintained that there was not enough oil available to justify the construction. The successful strike comes on the eve of the October 29 summit meeting in Ankara, where a political statement of strong support for Baku-Ceyhan is expected to be issued.
The Monitor is a publication of the Jamestown Foundation. It is researched and written under the direction of senior analysts Jonas Bernstein, Vladimir Socor, Stephen Foye, and analysts Ilya Malyakin, Oleg Varfolomeyev and Ilias Bogatyrev. If you have any questions regarding the content of the Monitor, please contact the foundation. If you would like information on subscribing to the Monitor, or have any comments, suggestions or questions, please contact us by e-mail at email@example.com, by fax at 301-562-8021, or by postal mail at The Jamestown Foundation, 4516 43rd Street NW, Washington DC 20016. Unauthorized reproduction or redistribution of the Monitor is strictly prohibited by law. Copyright (c) 1983-2002 The Jamestown Foundation Site Maintenance by Johnny Flash Productions