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.
Showing posts with label Caspian Sea. Show all posts
Showing posts with label Caspian Sea. Show all posts
Thursday, October 7, 2010
Friday, August 13, 2010
Chevron (NYSE:CVX), Conoco (NYSE:COP), Others Vying for Caspian Exploration Rights
ConocoPhillips (NYSE:COP), Chevron Corp. (NYSE:CVX), TX Oil Limited and Mubadala Development Co. are all in the running to acquire rights to explore the Caspian Sea blocks of Turkmenistan.
TX Oil Limited is a new company created this year to target Turkmenistan for development opportunities. It is chaired by the son of former President George H.W. Bush and brother former President George W. Bush, Neil Bush.
If I was a betting man, I would guess that company has an inside edge on bidding, as George H.W. Bush sent a letter with Neil on a trip in the early part of 2010 to communicate with the president of Turkmenistan, and made a personal visit in June. according to the country's website Turkmenistan.ru.
There aren't many proven reserves in the offshore blocks, so this is probably more of a strategic move to gain assess to onshore exploration opportunities, where natural gas is in abundance, with Turkmenistan reportedly holding the fourth largest reserves in the world.
The government of Turkmenistan will make the final decision on who gets the two blocks being offered.
TX Oil Limited is a new company created this year to target Turkmenistan for development opportunities. It is chaired by the son of former President George H.W. Bush and brother former President George W. Bush, Neil Bush.
If I was a betting man, I would guess that company has an inside edge on bidding, as George H.W. Bush sent a letter with Neil on a trip in the early part of 2010 to communicate with the president of Turkmenistan, and made a personal visit in June. according to the country's website Turkmenistan.ru.
There aren't many proven reserves in the offshore blocks, so this is probably more of a strategic move to gain assess to onshore exploration opportunities, where natural gas is in abundance, with Turkmenistan reportedly holding the fourth largest reserves in the world.
The government of Turkmenistan will make the final decision on who gets the two blocks being offered.
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