BP, Azerbijan agree to expand oil and gas interests
BP entered into a series of agreements that will build and expand on its oil and gas interests in Azerbaijan, including the next phase of development of the Shah Deniz gas field, which is operated by BP with a 29% participating interest.
The $2.9 billion Shah Deniz Compression project, the field’s third phase of development, will access and produce low pressure gas resources from the gas field, increasing resource recovery and extending production life. The project, which will include installation of a new unmanned compression platform, is expected to allow production of an additional gross 50 billion cu m of gas and 25 million barrels of condensate. The project is expected to receive first gas in 2029.
BP also completed an agreement with SOCAR to access two blocks in the Caspian Sea for exploration and development, for the discovered Karabagh oil field and the Ashrafi-Dan Ulduzu-Aypara (ADUA) area. BP will have 35% working interest and become operator of each block, with SOCAR retaining 65%.
Separately, BP and SOCAR also reached agreement for Turkey’s TPAO to take a 30% interest in the production sharing agreement for the Shafag-Asiman block in the Caspian Sea. The first well drilled in 2021 encountered gas condensate resources.
