BAKU, Azerbaijan – BP and state oil company SOCAR will pursue joint exploration and development of the Shafag-Asiman structure in the Azeri sector of the Caspian Sea.
This follows ratification of the new production-sharing agreement (PSA) by The Parliament of the Republic of Azerbaijan.
Rashid Javanshir, BP's regional president, said: “We are particularly pleased that the PSA was ratified by a unanimous vote. This is a good demonstration of the country's acknowledgement of BP's track record here and trust in our long-term commitment to Azerbaijan.”
The PSA, signed in Baku last October, lasts for 30 years. BP Exploration (Azerbaijan) will be operator with a 50% interest, with SOCAR holding the remaining equity.
The previously unexplored block is 125 km (78 mi) southeast of Baku and covers an area of around 1,100 sq km (425 sq mi). Water depths range from 650-800 m (2,132-2,624 ft), with reservoir depth of around 7,000 m (22,966 ft).
Azeri parliament approves BP PSA