President Aliyev approves production sharing agreement on D230 block in Azerbaijani sector of Caspian Sea
By Narmina Mammadova
President Ilham Aliyev has approved the production sharing agreement (PSA) on the D230 block in the North Absheron basin in the Azerbaijani sector of the Caspian Sea.
The PSA for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijani sector of the Caspian Sea was signed by the Azerbaijani state oil company SOCAR and BP on April 26, 2018.
The PSA was signed in London, in the presence of UK Prime Minister Theresa May and Azerbaijan’s President Ilham Aliyev, by Rovnag Abdullayev, President of SOCAR, and BP group chief executive Bob Dudley.
Under the PSA, which is for 25 years, BP will be the operator during the exploration phase holding a 50 percent interest, while SOCAR will hold the remaining 50 percent.
“We have a long tradition of successful cooperation with BP. I believe that the synergies between modern upstream technology and unique historical experience, embodied in both companies, create a solid basis for our continued success,” Abdullayev said earlier.
In turn, Bob Dudley stated that this agreement underpins a new joint effort by SOCAR and BP to explore further Caspian opportunities in support of long-term production in Azerbaijan.
Block D230 in the North Absheron basin in the Azerbaijani sector of the Caspian Sea covers the structure at the sea depth up to 300 meters. Its reservoir depth is 3,000-5,000 meters.
In May 2016, SOCAR and BP signed a memorandum of understanding on the geological exploration work on potentially promising structures of the D230 block.
The signed memorandum provided BP with the exclusive right to conduct negotiations with SOCAR in connection with the conclusion of an agreement on geological exploration and development of the D230 block.
SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company was established in 1992. Since then it produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.
SOCAR includes such production associations as Azneft (the enterprises producing oil and gas onshore and offshore), Azerikimya (the chemical enterprises) and Azerigas (distributor of gas produced in the country), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.
SOCAR established joint companies (including Georgia and Turkey), alliances, operating in various sectors of oil and gas spheres. It has representative offices in Georgia, the U.S., Turkey, Romania, Austria, Switzerland, Kazakhstan, Great Britain, Iran, Germany, Ukraine, Belgium and Canada.
The British Petroleum Company (BP) is aBritish multinational oil and gas company headquartered in London, England. It is one of the world's seven oil and gas "supermajors".
BP opened its first office in Baku in June 1992.
In Azerbaijan, BP operates under several production sharing agreements and host government agreements (HGAs) signed with the government of Azerbaijan. In Georgia and Turkey, it operates under HGAs that cover export pipelines and terminals.
BP remains committed to Azerbaijan’s future, helping the country maintain its role as one of the world’s major energy suppliers and create energy links with Europe.
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