The Zafar-Mashal prospect is 130km southeast of Baku and covers an area of around 640 square kilometres. Sea depth in the acreage is between 450-950 metres and the structure has potential reserves of 140 million tonnes of oil.

The president of Azerbaijan’s State Oil Company of the Azerbaijani Republic (Socar), Natik Aliyev, said, “This is the most expensive well in the Caspian Sea, so I don’t think ExxonMobil will drill a second well in the contract area.”

Aliyev is disappointed by ExxonMobil’s decision. He feels a second appraisal well at the Nakhichevan structure is required.

“We think the Nakhichevan structure in this respect is more viable, although Exxon says that if they do drill a second well and if they do find oil and gas, then these deposits will be of no commercial interest to them,” said Aliyev.

“I think otherwise going by all the parameters and indicators that we possess and by oil price trends on the world market. I think any deposit will be of commercial interest today.”

Aliyev said the corporation would have to compensate Socar if it chose not to drill the second well.

ExxonMobil is the operator of the block and holds a 30% stake. Socar has a 50% stake and ConocoPhillips holds the balance.