BP has signed new production sharing agreement (PSA) with the State Oil Company of the Republic of Azerbaijan (SOCAR) to jointly explore and develop potential prospects in the shallow water area around the Absheron Peninsula in the Azerbaijan sector of the Caspian Sea.
Under the agreement, the partners will explore the area which stretches along the margins of the Caspian basin to the south of the Absheron Peninsula.
The acreages, with water depths of up to 40m, have potential reservoir depths of 3000-5000m.
SOCAR president Rovnag Abdullayev said: "This phase will enable us to work together to ensure the long term future for Azerbaijan’s oil and gas production through exploring new opportunities.
"We look forward to this new opportunity that has a potential to contribute to maintaining oil production in Azerbaijan for many decades."
The agreement is part of the government’s efforts to ensure that all of areas are fully explored offshore Azerbaijan.
BP Azerbaijan, Georgia and Turkey regional president Gordon Birrell said: "BP is proud to embark on this new era of exploration in the Caspian together with SOCAR.
"This new partnership is based on BP’s extensive experience in responsibly exploring and developing in shallow water areas around the world and our expertise in using the best technology available in the industry."