BP Azerbaijan to search for more oil in country
By Gulgiz Dadashova
BP Azerbaijan plans to start three-dimensional seismic surveys from March 1 in potentially promising structures located in the shallow waters around the Absheron peninsula in the Caspian’s Azerbaijani sector, the company reported in its report on Environmental and Socio-Economic Impact Assessment.
The draft report prepared by AECOM company is open for proposals and comments until the end of February 2016.
“Geological exploration in the contract area includes both 2D and 3D seismic surveys. The purpose of the 3D surveys is to gather geophysical data, which will be used when planning the exploration and development of the contract area. 3D-seismic survey is scheduled to begin from March 1, 2016 and to complete within nine months - until November 24, 2016,” the report said.
The relevant agreement was signed between British BP and Azerbaijan’s state energy company SOCAR on December 22, 2014. This agreement is part of the government's plan to fully explore all the coastal areas of the Azerbaijani sector of the Caspian Sea.
The contract area is divided into five priority areas in which researches will be conducted alternately. The territory covered by the agreement, extends along the Absheron Peninsula’s southern part and covers an area of about 1900 square kilometers. In this area the sea depth is about 25 meters, and the depth of the bedding of the potentially productive strata - 3000-5000 meters.
The agreement’s term is 23 years with possible extension. It provides for parity (50%) participation of both sides.
The agreement takes into account all SOCAR’s risks, as the Company will undertake commitments on financing its share only if BP finds a prospective structure within the exploration works, confirms the availability of commercially profitable volume of oil at such structure and prepares a program of the field development within 6 month term. Only in this case the SOCAR will start meeting its liabilities. In other cases, if the efficiency of the field is not confirmed or if it’s not found, SOCAR will not cover expenses of the second party.
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