Baku, Azerbaijan, April 27
By Ilkin Shafiyev - Trend:
The BP has greatly contributed to the Azerbaijani economy’s development over the years of the company’s activity in Azerbaijan, Elnur Soltanov, head of the Caspian Center for Energy and Environment (CCEE) of ADA University, expert, told Trend April 27.
“The oil and gas sector laid the foundation for the development of the Azerbaijani economy,” he said. “The development of the oil and gas sector in Azerbaijan after the country gained independence is inextricably linked with BP. Such deposits in the Azerbaijani sector of the Caspian Sea as Azeri-Chirag-Gunashli are very complex, and in the first years of independence, Azerbaijan had neither the funds nor the technologies to develop them. At that time, BP and other foreign companies played a key role in the fields’ development. It was also a kind of political support for the projects being implemented.”
The expert reminded that today, BP is the owner of the biggest share and operator in the Azeri-Chirag-Gunashli and Shah Deniz projects.
“Projects in Azerbaijan brought BP billions of dollars,” he said. “The company increased its prestige and gained vast experience. In turn, Azerbaijani companies, working with BP, mastered new technologies in the oil and gas industry. Azerbaijanis today hold leading positions in BP-Azerbaijan, and this contributes to the development of human resources in this area.”
The production sharing agreement (PSA) for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea, signed by Azerbaijan's state oil company SOCAR and BP on April 26 in London.
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 interest.
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.
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