SOCAR, BP Sign Production Sharing Deal

BP Plc. has announced that it has signed a production sharing agreement with the State Oil Company of Azerbaijan Republic for exploration rights to the Caspian Sea.

The joint exploration agreement gives both companies rights to search and develop Block D230 in the North Absheron basin in the Azerbaijan sector of Caspian Sea, Business Insider reported.

The PSA was signed in London, in the presence of UK Prime Minister Theresa May and Azerbaijan’s President Ilham Aliyev, by Rovnag Abdullayev, president of SOCAR, and BP group chief executive, Bob Dudley. Abdullayev said: “We have a long tradition of successful cooperation with BP. I believe that the synergies between modern upstream technology and unique historical experience, embodied in both companies, create a solid basis for our continued success. “Being based on fair and equal conditions, today’s agreement will become an important milestone in the pursuit of the highest degree of efficiency in the joint development of the natural resources of Azerbaijan.”

Dudley added that this agreement underpins a new joint effort by SOCAR and BP to explore further Caspian opportunities in support of long-term production in Azerbaijan.

"We have now been operating in the region for more than 25 years and believe there is still significant oil and gas potential there," he said.. “We look forward to continuing to build on our significant business in Azerbaijan, working closely with SOCAR and others to explore and help secure the Caspian’s future for decades to come.”