SOCAR, BP Ink PSA for Azerbaijan Exploration

Baku/27.04.18/Turan: Azerbaijan's state oil company SOCAR and BP have signed a new production sharing agreement (PSA) for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea, BP Azerbaijan said in a message on April 26.

The PSA was signed by SOCAR President Rovnag Abdullayev and BP"s Group Chief Executive Bob Dudley in the presence of Azerbaijan"s President Ilham Aliyev and UK Prime Minister Theresa May in London.

Dudley said 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. 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," he said.

Block D230 lies some 135 kilometers (84 miles) north-east of Baku in the Caspian Sea. It covers an area of some 3,200 square kilometers and has not previously been explored. It has water depths of 400-600 meters and anticipated reservoir depths of about 3,500 meters.

Under the PSA, which is for 25 years, BP will be the operator during the exploration phase, holding a 50 percent interest, while SOCAR will hold the remaining 50 percent interest.

The signing of the PSA follows the Memorandum of Understanding for exploration of Block D230, which was agreed in May 2016.

The Memorandum gives BP the exclusive right to negotiate with SOCAR for signing an agreement on geological exploration and development of the block.

No previous work has been carried out at Block D230. -06D--