BP (NYSE:BP) landed a deal with Azerbaijan today to explore an develop a huge natural gas field in the Caspian Sea. The further reinforces their role as the top player in the country.
The agreement is connected to the Shafag-Asiman, and is for a period of 30 years. It's the first deal for newly installed BP CEO Bob Dudley, who replaced Tony Hayward at the helm.
SOCAR and BP said together in a statement that "they had signed a new production sharing agreement on joint exploration and development of the Shafag-Asiman structure in the Azerbaijan sector of the Caspian Sea."
The Shafag-Asiman natural gas field has never been explored before, and entails approximately 440 square miles, and is located in depths of 2,145 to 2,640 feet.
BP and SOCAR will be 50-50 partners in the deal, with BP running the operation.
Bob Dudley said, "This is an important day for Azerbaijan and BP as it marks the beginning of our bilateral cooperation in exploration and development of a new offshore block.
"With SOCAR and our partners, BP has helped to establish Azerbaijan as a world-scale oil and gas producer, and I believe the significant remaining potential will continue to make it relevant for decades to come."
Exploration is expected to last about 4 years, but could be extended another three years per the deal if needed.
Showing posts with label Socar. Show all posts
Showing posts with label Socar. Show all posts
Thursday, October 7, 2010
BP (NYSE:BP) Close to Signing Azerbaijan Gas Exploration Deal
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.
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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