By OGJ editors
HOUSTON, May 10 -- BP PLC said Azerbaijan’s parliament ratified the production sharing agreement between BP and State Oil Co. of Azerbaijan Republic (SOCAR) on joint exploration and development of the Shafag-Asiman deepwater structure in the Caspian Sea off Azerbaijan.
The unexplored block covers 1,100 sq km in 650-800 m of water 78 miles southeast of Baku and 38 miles south-southeast of Shah-Deniz gas field. Reservoir depth is 7,000 m, BP said.
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. We look forward to working in partnership with SOCAR to expand our mutual cooperation in exploration and development.”
The ratification follows the signing of the PSA in Baku in October 2010. Under the PSA, which is for 30 years, BP Exploration (Azerbaijan) Ltd. will be the operator with 50% interest, and SOCAR has 50%.