As has been already reported, SOCAR and BP have signed the production sharing agreement (PSA) to conduct joint geological exploration works on the potentially perspective fields on the shallow section on the south of the Absheron peninsula in the Azerbaijani sector of the Caspian Sea.
However, the joint press release of the companies contained no information about the companies’ shares in this project.
A source from BP-Azerbaijan told Turan that the companies have equal shares in the project – 50%. The project operator has not been defined yet.
BP reported that “this is the geological exploration contract. The company will have to perform deep geological and geophysical studies to detect any structures and then consider the exploration drilling.”
For this reason the contract does not have an accurate size of the contract area as well as the commitments on the exploration wells and name of any structure, a source from BP explained, Therefore, even though this is PSA, it is very different from the similar contracts earlier signed in Azerbaijan.
This is BP’s second PSA for exploration works in the Caspian Sea. At present the company has been conducting exploration on the deep sections of Shafag and Asiman structures.—0—
Economics
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