bp reveals reasons of selling part of SWAP stake to LUKOIL

bp reveals reasons of selling part of SWAP stake to LUKOIL

BAKU, Azerbaijan, Oct.5

By Leman Zeynalova – Trend:

bp has decided to hold a 25 percent equity share in the Shallow Water Absheron Peninsula (SWAP) project in Azerbaijan with a belief that this will enable the company to evenly distribute its investment potential in Azerbaijan and to redeploy capital to other areas of its business in line with the company’s strategy, bp Azerbaijan told Trend.

bp has agreed to sell a 25% participating interest in the Shallow Water Absheron Peninsula (SWAP) exploration project in the Azerbaijan sector of the Caspian Sea to LUKOIL.

Following completion of the sale, bp will remain operator of the SWAP production sharing agreement (PSA) during the exploration period, holding a 25% interest. On completion, participating interests in the PSA will be: SOCAR Oil Affiliate – 50%, bp – 25% and LUKOIL – 25%.

Subject to approval from the government of Azerbaijan, the deal, with an effective date of 1 July 2021, is expected to complete in the fourth quarter of 2021.

"Also, we will remain the operator during the exploration period and this allows us to hold a material position in the asset, which is consistent with our ACG (30.4 percent) and Shah Deniz (28.8 percent) participating interests.

In Azerbaijan, we are the operator of the country’s biggest hydrocarbon production projects and have built one of the most successful partnerships in the world. We in bp are proud to have been operating in the region safely and reliably for almost three decades. We will continue to focus on resilient hydrocarbons business here for the next three decades generating cash for Azerbaijan and the cash to enable us to transform into an integrated energy company," said the company.

The SWAP PSA was signed between bp and SOCAR in December 2014 and ratified by the Milli Majlis (Parliament) of Azerbaijan in 2015. The first exploration well in the North Khali prospective area was spudded on 16 August 2021 and the drilling is expected to be completed in the fourth quarter of 2021. The well is planned to reach total depth of up to 2,424 metres. The well data will then be analysed and, if successful, an evaluation programme may be conducted to confirm the results.

The SWAP 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 metres with potential reservoir depths of 2,000-5,000 metres.

A 3D seismic acquisition programme was conducted in the contract area by bp in 2016.

Following completion of the processing and interpretation of the 3D data acquired from the contract area, a Notice of Prospectivity was submitted to SOCAR in 2017 in respect of three prospective areas – North Khali, Bibi-Heybat East and Garabatdag, with one exploration well planned to be drilled in each of the prospective areas.

The Environmental and Socio-economic Impact Assessment (ESIA) for the first SWAP well was disclosed in August 2020 and following public discussions was approved by the government in January 2021, providing permission to commence drilling activities in the contract area.

---

Follow the author on Twitter: @Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
Turkmen company to purchase chemical products via tender
Turkmen company to purchase chemical products via tender
Kazakhstan’s KMG-Security LLP opens tender to buy diesel fuel
Kazakhstan’s KMG-Security LLP opens tender to buy diesel fuel
Kazakh oil company opens tender to buy pipes
Kazakh oil company opens tender to buy pipes
Loading Bars
Latest
Azerbaijan to increase judicial, law enforcement spending in 2022
Iran sees decrease in exports to Afghanistan
“Sustaining Peace in the Region: Rebuilding Karabakh” conference held in Baku State University (PHOTO)
Turkey ready to invest in restoration of Azerbaijan's Karabakh
Georgia releases data on COVID-19 cases for October 27
Iran's exports via Isfahan Province soar
Azerbaijan plans to increase subsidies for Nakhchivan in 2022
World Ethnosport Confederation talks rapid restoration of Azerbaijan's Karabakh
Azerbaijan to raise expenditures on education in 2022
SOFAZ to increase transfers to Azerbaijani state budget in 2022
Iranian currency rates for October 27
Azerbaijan talks funds planned for reconstruction of liberated territories in 2022
Azerbaijan unveils planned expenditures on defense and security in 2022
Indo-Pacific regional dialogue starts today with focus on maritime strategy
Roll-out of Russian Rostselmash combine assembly plant in Azerbaijan postponed due to COVID-19
Restoration work in Azerbaijan's liberated lands will only accelerate - economy minister
Azerbaijan state budget revenues forecast for 2022 unveiled
Turkey shares cargo traffic data for its Gemlik port in 9M2021
Turkmenistan launches production of import-substituting pasteurized products
Turkey discloses volume of cargo shipment via its Botas port for 9M2021
Russia cuts import of Turkish-made cement
Azerbaijan establishes commission for preparation of civil defense plan
Roscosmos plans to orbit its robotic spacewalker in 2024
Azerbaijani, Turkish MoDs meet in liberated Zangilan
Oil falls after increases in U.S. crude, fuel stockpiles
Turkey discloses data on cargo handling from Germany via local port for 9M2021
Cause of problem at Iran’s petrol stations is cyberattack - SNSC
Azerbaijan, AIIB talk co-op in ‘smart’ and ‘green’ concepts
Fuzuli airport can attract investments needed to restore prosperity in Karabakh - Bryza
UK's Sunak tries to move on from COVID with new spending plans
U.S. considering adding Israel, Romania, Bulgaria to visa waiver program
Bahrain approves Sinopharm vaccine for children aged 3 to 11
Hamburg welcomes 1st China-Europe freight train from Shanghai amid logistics tension
Iran, Pakistan call for closer ties, vow to help Afghanistan
EU energy ministers discuss power price surge
U.S. FDA advisers back Pfizer/BioNTech COVID-19 vaccine for children
Pension Fund announces average pension rate in Uzbekistan
I am absolutely sure that Turkey and Azerbaijan, as two brotherly countries, will continue to move forward together - President Aliyev
German President presents Angela Merkel with resignation papers
Kazakh ambassador hails Iran’s role in SCO
Chronicles of Victory: October 27, 2020
Fuzuli International Airport to unbreakably connect Karabakh with Azerbaijan - Turkish official
Georgian PM, Estonian Defense Minister discuss military cooperation
Turkey will continue with all its capabilities to support fraternal Azerbaijan - Erdogan
Turkish President Recep Tayyip Erdogan completes official visit to Azerbaijan
Not every politician can achieve rapid development in short time in territories liberated from occupation - Erdogan
In two weeks, we will celebrate liberation of Shusha as great Victory Day - President Aliyev
Biden heads to G20 to talk energy prices, supply chain woes
President Aliyev names visit of President Erdogan to Azerbaijan example of true brotherhood
Day will come when we will be able to travel from Zangazur to Istanbul - Erdogan
You are going to Armenian border, aren't you? You will go further - Turkish president
If Armenia shows goodwill towards Azerbaijan, there will be no obstacles to normalization of relations between Turkey and Armenia - President Erdogan
Turkey and Azerbaijan as two fraternal countries always next to each other – President Aliyev
Joint steps of Azerbaijan and Turkey will forever remain in history - President Aliyev
Shusha Declaration declaration officially raised Azerbaijani-Turkish relations to level of alliance - President Aliyev
Presidents of Azerbaijan and Turkey make press statements (PHOTO/VIDEO)
Georgian GDP continues its robust recovery – Renaissance Capital
President Erdogan presents President Aliyev with 'Kharibulbul' image watch (PHOTO/VIDEO)
Presidents of Azerbaijan and Turkey hold one-on-one meeting in Zangilan (PHOTO/VIDEO)
Russia to supply Turkmenistan’s Turkmengaz with pipes
Iran facing problems at filling stations
Azerbaijan increases propylene production in 9M2021
Azerbaijani, Turkish presidents view works done under “smart village” project in Zangilan (PHOTO/VIDEO)
Uzbekistan reveals data of foreign investment in mining industry
Uzbekistan, Singapore to co-op for humanitarian programs and projects
GM to boost EV profile with 40,000 charging stations in U.S., Canada
First Vice-President Mehriban Aliyeva posts photos from Aghali village, Zangilan district on her Instagram page (PHOTO)
Russia, UAE ink inter-governmental space exploration deal
Georgia plans to renovate its Airports Association
U.S. home price growth slowed in August- S&P Case-Shiller
Kazakhstan counts on international experience on operating nuclear power plants
Bahar Azadi gold coin price dips in Iran
Engineering work in Azerbaijan's liberated lands continues - MoD (PHOTO/VIDEO)
Uzbekistan's GDP grows in 9M2021
Kazakhstan sees decrease in production of iron ores
Kazakhstan’s Energy Ministry comments on Marine Access Channels project
Iran keen to increase Methanethiol production
Webinar on Engineering products organised by the Embassy of India (PHOTO)
Iran plans to develop Chaharmahal Bakhtiari Province
Azerbaijan becomes largest diesel supplier to Georgia
Bahrain approves Sinopharm vaccine for children aged 3-11
Official welcome ceremony held for Turkish President Recep Tayyip Erdogan in Aghali village, Zangilan district (PHOTO/VIDEO)
Israeli co Emtan to provide Spanish police with 9,120 pistols
Iran boosts its TEU container transit via Shahid Rajaee port
Iran issues loans to several enterprises
Azerbaijan talks provision of Internet to inaccessible areas
Turkmen Khazar Consortium opens tender for chemicals
Opening of Fuzuli Int’l Airport to speed up investment, social dev’t of Azerbaijan’s Karabakh - Israeli expert
President Ilham Aliyev and President Recep Tayyip Erdogan lay foundation for “Dost Agropark” in Zangilan (PHOTO/VIDEO)
Kazakhstan increases cargo transportations volumes via maritime
Turkmen company to purchase chemical products via tender
Azerbaijani products on display at int'l exhibition in China (PHOTO)
Turkey unveils number of ships docking at Iskenderun port
India, UK take part in joint exercise Konkan Shakti 2021
Fitch Ratings unveils long-term IDR of Astana Gas KMG
TDB and ICD sign MoU to support private sector investment in common African member states
Georgia shares its TOP-5 fuel exporters
Kazakhstan provides transit corridor for Afghan women
Iran’s West Oil & Gas Production Company prevents declining gas production
Iran’s Tejarat Bank provides loans related to coronavirus
All news