BP, SOCAR ink agreement to explore shallow water around Absheron Peninsula (UPDATE)
Details added (first version posted on 20:10)
Baku, Azerbaijan, Dec. 22
BP and SOCAR (the State Oil Company of Azerbaijan) signed Dec. 22 a new production sharing agreement (PSA) to jointly explore for and develop potential prospects in the shallow water area around the Absheron Peninsula in the Azerbaijani sector of the Caspian Sea, BP said in a message.
This new agreement is part of the government's plan to ensure that all of Azerbaijan's offshore areas are fully explored.
The PSA was signed by Rovnag Abdullayev, President of SOCAR, on behalf of the government of Azerbaijan, and Gordon Birrell, BP's Regional President for Azerbaijan, Georgia and Turkey.
"The signing of this new PSA, which clearly deepens our partnership with BP, is an important milestone for all parties involved - the government, SOCAR and BP," Abdullayev said.
"It marks the beginning of a new phase in our cooperation. This phase will enable us to work together to ensure the long term future for Azerbaijan's oil and gas production through exploring new opportunities. We look forward to this new opportunity that has a potential to contribute to maintaining oil production in Azerbaijan for many decades," he added.
Gordon Birrell, for his part, said BP is proud to embark on this new era of exploration in the Caspian Sea together with SOCAR.
"This opens a new stage in our partnership. This new partnership is based on BP's extensive experience in responsibly exploring and developing in shallow water areas around the world and our expertise in using the best technology available in the industry. So we thank the government and SOCAR for another opportunity to deploy our expertise and technology, this time in the shallow water," Birrell added.
The PSA contract area stretches along the margins of the Caspian basin to the south of the Absheron Peninsula. The acreage features water depths of up to 40 meters with potential reservoir depths of 3000-5000 meters.