Baku: BP today announced it has completed its acquisition of participating interests in two offshore exploration and development blocks in the Azerbaijan sector of the Caspian Sea. Agreements finalizing the deal were signed between BP and SOCAR (State Oil Company of the Azerbaijan Republic) during Baku Energy Week.
According to Azeri-Press News Agency, the first block involved in the agreement is the Karabagh oil field, located 120 km east of Baku and 20-25 km from the Gunashli field, at water depths of 150-200 meters. The development of this field is governed by an existing risk service agreement (RSA) signed in 2018. The second block is the Ashrafi – Dan Ulduzu – Aypara (ADUA) area, situated 90-110 km northeast of Baku at water depths ranging from 80 to 180 meters. This block contains several existing discoveries and prospective structures, and is governed by a production sharing agreement (PSA) also entered into in 2018.
BP has acquired a 35% participating interest in each of the RSA and PSA from SOCAR, which retains a 65% interest in each agreement. BP will assume the role of operator for both the RSA and PSA. The agreements were signed by Rovshan Najaf, President of SOCAR, and Gary Jones, BP regional president for Azerbaijan, Georgia, and Trkiye.
Rovshan Najaf, President of SOCAR, expressed optimism about the new agreements, stating that the Karabagh and ADUA areas offer significant potential and that BP’s expertise as an operator will be crucial in unlocking their full value. Najaf emphasized that this cooperation builds on the vision laid by the National Leader Heydar Aliyev and continued under President Ilham Aliyev, reinforcing Azerbaijan’s role as a trusted global energy partner.
Gordon Birrell, BP executive vice president, production and operations, highlighted the strategic significance of the new commitment to Azerbaijan. He noted that the agreements represent a significant potential growth opportunity for BP’s upstream oil and gas business. Birrell emphasized that BP’s experience and resources will be instrumental in accelerating progress in these areas, building on the longstanding partnership with SOCAR to deliver results safely and efficiently.