Sources in SOL report that those wells are to be drilled by Chinese service company Great Wall Drilling at Garabagly field. It should be noted that as in the process of drilling of the first exploration well (in 2002), the depth of 5300-5500 meters is going to be reached. This year - on 29 May, SOL started drilling of development wells at Garabagly field and drilled 4 such wells. Each of those wells produces 40- 45 tons of oil daily. As the result, the operating company manage to increase daily production rates over 1000 tons. SOL plans to drill 12 more development wells by the end of 2003. SOL expenses this year will total $80 million - 60% above figures of the same period of last year. The production sharing agreement was signed in Baku on 15 December 1998. The contract was approved by the Parliament of Azerbaijan on 16 April of 1999. The contract came into force by presidential decree of 27 April 1999. Operating company SOL was established on 12 May 1999 and registered in Baku on 25 October of the same year. SOL has started to execute its contract obligations only by the end of 1999. As of the time of accepting Kursengi and Garabagly fields at its balance, daily production from these fields did not exceed 370 tons. By the results of year 2002, SOL daily produced 840 tons, in 2001 - 760 tons of oil. Sharers in Kursengi and Garabagli projects are currently two subsidiary companies of China National Petroleum Corporation (CNPC - 50%) - China National Oil and Gas Exploration and Development Corp (CNODC) and CNPC (Hong Kong) Ltd (CNPCHK), as well as the state oil company of Azerbaijan (50%). SOL is largest oil and gas producer onshore Azerbaijan at present. P.I.N//Baku Today