Baku: bp, SOCAR, and TPAO have signed several agreements to enable TPAO’s participation in the production sharing agreement (PSA) for the Shafag-Asiman offshore block located in the Azerbaijan sector of the Caspian Sea, APA-Economics reports. This collaboration aims to accelerate the evaluation of the block, facilitating the identification of suitable options to advance the project.

According to Azeri-Press News Agency, the agreement is expected to be finalized by the end of the third quarter of 2025. Upon completion, TPAO will hold a 30% stake in the PSA, receiving 15% each from bp and SOCAR. Currently, bp and SOCAR each possess a 50% participating interest. During the exploration phase, bp will continue as the operator of the PSA.

Additional evaluation activities, including drilling into the Lower Surakhany reservoir, are planned to support the project’s progress. Consequently, the PSA’s exploration period will be extended to accommodate these activities. The agreements were signed during Baku Energy Week.

Rovshan Najaf, president of SOCAR, expressed satisfaction in welcoming TPAO to the partnership, highlighting the significance of regional cooperation in advancing Azerbaijan’s offshore resources. Gary Jones, bp’s regional president, emphasized the collaboration’s potential to enhance technical and financial capabilities, while Ahmet Trkoglu, chairman and CEO of TPAO, reaffirmed Trkiye Petrolleri’s commitment to a secure and sustainable energy future.

This collaboration merges SOCAR’s local expertise, bp’s technology, and TPAO’s offshore experience, aiming to maximize the potential of the Caspian Sea structure. Beyond exploration, the partnership is expected to create high-value employment and strengthen the Southern Gas Corridor, contributing to regional stability, energy security, and economic growth.

Exploration activities conducted so far include a 3D seismic survey and the drilling of the SAX01 exploration well in 2021, which confirmed gas condensate resources in the Fasila reservoir. The well was suspended for further evaluation and planning.