SOCAR and BP sign agreement on new production sharing for geological exploration in Azerbaijan

SOCAR and BP sign agreement on new production sharing for geological exploration in Azerbaijan
# 26 April 2018 17:45 (UTC +04:00)

SOCAR and BP have signed a new agreement on the production sharing for the joint exploration and development of the D230 block in the North Absheron basin today in the Azerbaijani sector of the Caspian Sea.

The agreement was signed by President of SOCAR Rovnag Abdullayev and Group Chief Executive of BP Bob Dudley in London with the participation of Azerbaijani President Ilham Aliyev and UK Prime Minister Theresa May.

President of SOCAR Rovnag Abdullayev said at the signing ceremony that the agreement is based on equal and fair grounds:

"We have had a tradition of long-term cooperation with BP. I am convinced that thanks to modern oil and gas technologies and unique historical experience of both companies this cooperation will continue successfully. The agreement signed today is based on equal and fair grounds and will play an important role in the joint realization of the natural resources of Azerbaijan with maximum efficiency,” he said.

Dudley noted that this agreement is based on new joint efforts to support long-term production in Azerbaijan and to explore opportunities for SOCAR and BP in the Caspian Sea.

"We have been operating in this region over 25 years and we believe there is a significant oil and gas potential here. We will continue to work closely with SOCAR and other partners to carry out geological exploration work and to boost our substantial business in Azerbaijan by helping to secure the future of the Caspian Sea in the coming decades,” he said.

The D230 block is located in the Caspian Sea, approximately 135 kilometers (84 miles) north-east of Baku. The block covers an area of ​​approximately 3,200 square kilometers. The estimated depth of the productive layer of the block is approximately 3,500 meters. BP will have 50 per cent stake in the exploration period, while another 50 per cent will belong to SOCAR.

Earlier, in May 2016, a Memorandum of Understanding was signed with SOCAR on geological exploration at the D230 block.