BP to Explore New Azerbaijan Project: Update

(Socar CEO gives timing of deal)

UK operator BP, which is developing major oil and gas fields in Azeri part of the Caspian sea, has signed a memorandum of understanding to jointly explore potential prospects in the North Absheron basin.

The MOU gives BP the exclusive right to negotiate an agreement with Socar to explore and develop block D230 in water depths of up to 300 metres.

“In Azerbaijan, BP has been the main investor and operator of great projects of regional and global significance. A new MOU will lay the foundation of a new offshore project,” said Socar’s president Rovnag Abdullaev May 24. “This area has never been explored before and no geological or other work has been done there,” he said, adding that the actual deal might be signed by the autumn.

Block D230 is north of BP’s other exploration block – the shallow water Absheron prospect, off the peninsula of that name, not to be confused with French Total's Absheron field. It will ensure the long term future for Azerbaijan’s oil and gas production through exploring new opportunities, according to BP’s regional president, Gordon Birrell.

“We look forward to this new opportunity and are committed to contribute to maintaining oil production in Azerbaijan for many decades,” he said.

Azerbaijan desk