View source for North Absheron Operating Company

{{Infobox company
| name = North Absheron Operating Company
| logo =
| type = Private
| founder = [[Amoco]] (30%),<br/> [[SOCAR]] (20%), <br/> [[Itochu]] (20%), <br/> [[Unocal]] (25.5%), <br/> [[Delta Oil Company]] (4.5%)
| foundation = 1997
| location = [[Baku]], [[Azerbaijan]]
| key_people = Thomas L. Klockenbrink (President)
| industry = [[Petroleum]]
| revenue = 
| operating_income = 
| net_income = 
| homepage = 
| intl = yes
}}

'''North Absheron Operating Company''' ('''NAOC''') was an international [[petroleum]] consortium based in [[Baku]], [[Azerbaijan]] created to explore and develop the [[Dan Ulduzu field|Dan Ulduzu]] and [[Ashrafi field|Ashrafi]] prospects in the Azerbaijani sector of the [[Caspian Sea]]. The company started its operations in 1997.<ref name=AI>{{cite news | url=http://azer.com/aiweb/categories/magazine/62_folder/62_articles/62_socar_danulduzu.html| title= Dan Ulduzu and Ashrafi. No longer in operation after April 1999 | publisher= [[Azerbaijan International]] | author = Betty Blair| date= Summer 1998| accessdate=2010-06-29}}</ref> On March 7, 2000 the company stopped operations after the management of company considered the contract was not financially profitable.<ref name=interfax>{{cite news | url=http://www.interfax.az/az/index.php?option=com_content&task=view&id=5648&Itemid=9 | title= AFR Azərbaycanla enerji sahəsində əməkdaşlığın intensivləşdirilməsinin tərəfdarıdır | trans_title= Germany is interested in intensifying cooperation with Azerbaijan in the energy sector | publisher= [[Interfax]] Azerbaijan | author = | date=2007-05-22 | accessdate=2010-06-29}}</ref>

==Overview==
NAOC was in charge of managing operations for [[Dan Ulduzu field#Dan Ulduzu-Ashrafi bloc|Dan Ulduzu-Ashrafi bloc]]. The consortium consisted of operator [[Amoco]] (acquired by [[BP]]) (30%) and partners [[SOCAR]] (20%), [[Itochu]] (20%), [[Unocal]] (25.5%), [[Delta Oil Company]] (4.5%).<ref name=Trend>{{cite news | url=http://az.trend.az/capital/pengineering/892663.html | title= Wintershall Azərbaycanın dəniz yatağında kəşfiyyat quyusu qaza bilər | trans_title= Wintershall might start drilling in Azerbaijani oil field | publisher= [[Trend News Agency]] | author = | date=2007-03-02 | accessdate=2010-06-29}}</ref> The 25-year [[Production sharing agreement|PSA]] agreement between Azerbaijani government and the companies was signed on December 14, 1996 and ratified by the [[National Assembly of Azerbaijan|Azerbaijani Parliament]] on February 25, 1997.<ref name=AI2>{{cite news | url=http://azer.com/aiweb/categories/magazine/44_folder/44_articles/44_socar_oilconsortium.html| title= Fourth Oil Consortium Signed. Dan Ulduzu and Ashrafi Prospects | publisher= [[Azerbaijan International]] | author = Betty Blair| date= Winter 1996| accessdate=2010-06-28}}</ref>

The PSA area covered some 453&nbsp;km<sup>2</sup> was located {{convert|105|km|mi|abbr=on}} northeast of Baku and are believed to contain reserves of approximately 1 billion barrels and 65 billion cm of gas.<ref name=AI2/> The first exploration well Ashrafi-1 was drilled in February 1998. The results indicated 620,000&nbsp;cm and 3,400 bbl per day.<ref name=AI/>

Although the estimated investment foreseen for the project was $2 billion, over the period of exploration operations the company spent only a total of $64.5 million.<ref name=kaspiy>{{cite web | url= http://www.kaspiy.az/articles.php?item_id=20050622110830889&sec_id=2| title= Нет худа без добра. "Ашрафи" нашло судьбу |trans_title= Good things happen. Ashrafi found its destiny |accessdate=2010-06-28}}</ref> The initial right for development of the field was granted to Amoco and Unocal in 1992. The other partners joined in mid-1990s.<ref>{{cite web | url= http://library.aliyev-heritage.org/az/6307863.html| title= Speech of Heydar Aliyev on PSA agreement with foreign investors |accessdate=2010-06-28}}</ref>

==Humanitarian projects in Azerbaijan==
NAOC was also involved in charity and humanitarian projects in Azerbaijan. The consortium paid for construction of housing for 100 Azerbaijani families that became [[refugees]] and [[Internally displaced person|IDPs]] displaced from their homes during [[Nagorno-Karabakh War]]. The housing complex is located in [[Mingachevir]] city. Construction of five community centers for refugees were also funded by NAOC through Relief International. Partial funding was also extended to [[Counterpart International]] for assistance with supplies for orphanages.<ref name=AI/>

==See also==
{{Portal|Azerbaijan|Energy|Companies}}
*[[Dan Ulduzu field]]
*[[Ashrafi field]]
*[[Azeri-Chirag-Guneshli]]
*[[SOCAR]]

==References==
{{Reflist}}

==External links==
*[http://azer.com/aiweb/categories/topics/Oil/oilcontracts_map.html Location of Azerbaijani oil fields from Azerbaijan International magazine]
*[http://www.socar.az State Oil Company of Azerbaijan Republic Official Site]
*[http://bp.com BP Official Site]

{{Energy in Azerbaijan}}

{{DEFAULTSORT:North Absheron Operating Company}}
[[Category:Oil and gas companies of Azerbaijan]]
[[Category:Caspian Sea]]
[[Category:Itochu]]