Azerbaijan: Production Sharing Agreement Joint Exploration and Development of Caspian Oil Field
Socar and BP today signed a new production sharing agreement (PSA) for the joint exploration and development of Block D230 in the North Absheron basin in the Azerbaijan sector of the Caspian Sea.
London/UK – The PSA was signed in London, in the presence of UK Prime Minister Theresa May and Azerbaijan’s President Ilham Aliyev, by Rovnag Abdullayev, President of Socar, and BP group chief executive Bob Dudley.
Block D230 lies some 135 km north-east of Baku in the Caspian Sea. It covers an area of some 3,200 km2 and has not previously been explored. It has water depths of 400-600 m and anticipated reservoir depths of about 3,500 m.
Under the PSA, which is for 25 years, the UK oil company will be the operator during the exploration phase holding a 50 per cent interest while Socar will hold the remaining 50 % interest.
The signing of the PSA follows the Memorandum of Understanding for exploration of Block D230, which was agreed in May 2016.