BP Keen to Renew Caspian Contract

BP Keen to Renew Caspian ContractBP Keen to Renew Caspian Contract

Oil major BP intends to continue as operator of a key Caspian oilfield complex after the current production-sharing deal expires, according to Azerbaijan’s state oil company. “We are in talks” on the terms of BP extending its role as operator of the Azeri-Chirag-Guneshli, or ACG, fields when the existing agreement expires in 2024, Rovnaq Abdullayev, chief executive officer of State Oil Co. of Azerbaijan, or SOCAR, told reporters in Baku on Friday, Bloomberg reported. Abdullayev’s comments signal a thawing in BP’s relations with the Azeri government, after President Ilham Aliyev three years ago blamed an unexpected decline in oil output from the ACG fields on “grave mistakes” by the British oil producer. Azerbaijan was considering various options for the ACG fields, including making SOCAR the operator. BP, the biggest shareholder in the group developing the ACG fields, gets about 5% of its oil output from the country, according to a 2014 annual report. Others in the development group include Chevron, Exxon Mobil, Statoil, Turkiye Petrolleri, Itochu Corp. and ONGC Videsh.