OREANDA-NEWS. October 07, 2010. SOCAR and BP Exploration (Azerbaijan) signed a new production sharing agreement (PSA) on joint geological exploration and development of the “Shafag-Asiman” perspective structure in the Azerbaijani sector of the Caspian Sea. SOCAR President Mr. Rovnag Abdullayev pointed out the importance of successful cooperation with BP in implementation of new oil strategy, which was founded by Azerbaijani National Leader Mr. Heydar Aliyev and now is successfully continued by Azerbaijani President Mr. Ilham Aliyev.

He spoke about achievements gained within the projects operated by BP in Azerbaijan and noted that the relations between the two companies will expand in future. Speaking at the event BP’s visiting Group Chief Executive Officer Mr. Robert 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.” Afterwards, the PSA on joint geological exploration and development of the “Shafag-Asiman” perspective structure was signed by SOCAR President Mr. Rovnag Abdullayev and BP Azerbaijan President Mr. Rashid Javanshir.

The signing of the PSA follows the earlier concluded “Heads of Agreement” which defined the basic commercial principles of the contract in July of the current year. Under the PSA, which is for 30 years, BP Exploration Caspian Sea Limited will be the operator with 50 per cent interest while SOCAR will hold the remaining 50 per cent equity. The block lies about 125 km to the south-east of Baku. It covers an area of some 1100 square km and has never been explored before. It is located in a deepwater section of about 650-800 meters with reservoir depth of some 7000 meters.