"Chinese company Shengli (the operator for Pirsagat field) has submitted SOCAR a working program and project budget. Investment over the contract period is planned at $300 million, including $147 million to drill new wells, $18 million for exploration and infrastructure repair, and $127 million in operating costs," Aliyev said. He said $8 million has been invested in the field so far this year and another $18 million will be invested by year's end. Aliyev said oil production resumed at the field in April and daily flows total 13 tonnes. "The Chinese company has promised to increase annual production at Pirsagat to 160,000 tonnes. During the 25-year contract production will total 2.8 million tonnes of oil," he said. The contract to rehabilitate, explore and develop Pirsagat field was signed July 4, 2003 for 25 years with the option to extend for another five years. Shengli has a 50% share in the project, SOCAR holds 20%, and Middle East Petroleum holds 30%. Pirsagat field is on the Caspian Sea coast. Development began in 1985. The field has 25 wells and remaining oil reserves of 7 million tonnes. Shengli is a subsidiary of China's Sinopec. Middle East Petroleum is a division of Azerbaijan's Azersun Holding that specializes in oil shipments from Kazakhstan and Turkmenistan. PIN//Interfax