BP, SOCAR sign agreement for Caspian Sea block

BP PLC and State Oil Co. of the Azerbaijan Republic (SOCAR) said they have signed a memorandum of understanding to jointly explore and develop the Shafag and Asiman structures in the Azeri section of the Caspian Sea, about 125 km southeast of Baku.

July 16, 2009

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, July 16 -- BP PLC and State Oil Co. of the Azerbaijan Republic (SOCAR) said they have signed a memorandum of understanding to jointly explore and develop the Shafag and Asiman structures in the Azeri section of the Caspian Sea, about 125 km southeast of Baku.

The MOU was signed by SOCAR Pres. Rovnag Abdullayev and Andy Inglis, BP chief executive of exploration and production, in the presence of Azerbaijan President Ilham Aliyev and UK Prime Minister Gordon Brown.

As part of Azerbaijan’s plan to ensure that all of its waters are fully exploited, the MOU gives BP the exclusive right to negotiate a production-sharing agreement to explore and develop the block.

The block, which covers 1,100 sq km of unexplored area, lies in a deepwater section of 650-800 m with reservoir depth of 7,000 m.

Contact Eric Watkins at [email protected].