BP PLC (NYSE:BP) is reportedly close to signing a deal with Socar, the Azerbaijan state oil company, to explore and develop Shafag-Asiman, a natural-gas field located in the Caspian Sea.
Estimated gas reserves in the field are about 17 trillion cubic feet, said Socar. If the estimates are correct, that would be close to the size of the huge Shah Deniz gas field, which is operated by BP.
The terms of the deal are a 50-50 sharing of production revenue.
BP has a large presence in the Caspian sea, including the Azeri-Chirag-Gunashli oilfield, along with the Baku-Tbilisi-Ceyhan pipeline, which transports Azeri oil to the Mediterranean coast of Turkey.
Even though BP has a tattered reputation in the U.S., it continues to be able to make huge deals outside the country, giving confidence for investors who have stuck with the company, and will benefit as the share price of BP gradually goes up.
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