On May 6, the Parliament of the Republic of Azerbaijan ratified the new production sharing agreement (PSA) between BP and SOCAR on joint exploration and development of the Shafag-Asiman structure in the Azerbaijan sector of the Caspian Sea.
According to Rashid Javanshir, BP’s Regional President, “We are particularly pleased that the PSA was ratified by a unanimous vote. This is a good demonstration of the country’s acknowledgement of BP’s track record here and trust in our long-term commitment to Azerbaijan. We look forward to working in partnership with the State Oil Company of Azerbaijan (SOCAR) to expand our mutual cooperation in exploration and development”.
The ratification follows the signing of the PSA in Baku in October, 2010. Under the PSA, which is for 30 years, BP Exploration (Azerbaijan) Limited will be the operator with 50 per cent interest while SOCAR will hold the remaining 50 per cent equity.
The block lies some 125 kilometers (78 miles) to the SE of Baku. It covers an area of some 1100 square kilometers and has never been explored before. It is located in a deepwater section of about 650-800 meters with reservoir depth of about 7000 meters.