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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Azerbaijan’s state oil company SOCAR signed a memorandum of cooperation with North Macedonian company ECM on Thursday, during a visit to Baku by North Macedonia's President Gordana Siljanovska-Davkova, an informed source told Turan.
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Discussions were held in Baku within the framework of the 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change, focusing on the "Decarbonization and Climate Adaptation of the Cotton-to-Clothing Value Chain." Among other topics, the state of cotton farming in Azerbaijan was also addressed.
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Azerbaijan has attracted significant interest from companies in both developing and developed countries, as well as from state and private sector representatives of at least 10 nations, regarding participation as shareholders in the Climate Finance Action Fund (CFAF), which has a total budget of $1 billion. The CFAF is one of Azerbaijan’s 14 key initiatives unveiled at COP29, Yalchin Rafiev, Azerbaijan's chief negotiator at COP29 and Deputy Foreign Minister, said at a press conference on Tuesday.
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The Azerbaijani government has proposed that the OPEC Fund participate in financing several renewable energy projects, including offshore wind energy development, green energy corridor initiatives, and a 1 GW project planned by SOCAR in partnership with the UAE-based company Masdar.
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