Azeri parliament approves BP deal on Caspian fields
BAKU – The Azerbaijani parliament on Friday ratified the production sharing agreement signed by Azerbaijan's state energy firm Socar with oil giant BP on joint development of the Shafag-Asiman structure in the Azerbaijan sector of the Caspian Sea.
Under the PSA, which covers 30 years, BP Exploration (Azerbaijan) Limited will be the operator with 50 percent interest, while Socar will hold the remaining 50 percent equity.
The block lies some 125 kilometers to the southeast of Baku. It covers an area of some 1,100 square kilometers and has never been explored before. It is located in a deepwater section of about 650-800 meters with reservoir depth of about 7,000 meters. Gas reserves are estimated at 300-500 billion cubic meters.
Exploration work will be carried out over four years, with a possible extension for another three years. Two wells are to be drilled in the initial stage. Two more wells will be drilled during the following stage if a need arises.
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