BP acquires 35% stakes each in Karabakh, Ashrafi-Dan-Ulduzu-Aypara development projects in Caspian Sea - BP-Azerbaijan
BAKU. June 3 (Interfax) - The UK's BP plc has acquired 35% participating interests in both the Karabakh field development project and the prospective Ashrafi-Dan-Ulduzu-Aypara structures in Azerbaijan's sector of the Caspian Sea, BP-Azerbaijan said.
"Today BP announced the completion of a transaction to acquire participating interests in two offshore exploration and production blocks located in Azerbaijan's sector of the Caspian Sea. The agreements formalizing the transaction were signed today by BP and the State Oil Company of the Azerbaijani Republic (SOCAR) as part of Baku Energy Week," the company said.
SOCAR retains the remaining 65% in both projects. BP will serve as operator for both projects.
For the Karabakh field, BP joined the existing Risk Service Contract, while for the Ashrafi-Dan-Ulduzu-Aypara block it entered into a Production Sharing Agreement (PSA) signed in 2018, the company said.
As reported, SOCAR and BP signed a Memorandum of Understanding on September 20, 2024, regarding two offshore areas - the Karabakh oil field and the Dan Ulduzu-Ashrafi-Aypara structure in Azerbaijan's sector of the Caspian Sea.
The Karabakh oil field is located 120 km east of Baku, 20-25 km from the Gunashli field in the Caspian, at a depth of 150-200 meters. The Ashrafi-Dan Ulduzu-Aypara structure is situated 90-110 km northeast of Baku, at depths of 80-180 meters.
On May 31, 2018, SOCAR and Equinor signed a PSA for exploration and development of the Ashrafi-Dan Ulduzu-Aypara prospective structures block and a Risk Service Contract for development of the Karabakh field. To implement the project, SOCAR and Equinor established an operating company on a parity basis. However, in December 2023, Equinor sold its 50% stake in these projects to SOCAR. The transaction was closed on April 24, 2024.
In 1997, SOCAR signed a contract for development of the Ashrafi-Dan-Ulduzu block with BP (30%), Unocal (25.5%), Itochu (20%) and Delta HESS (4.5%). The state company's share in the project was 20%. Exploration work at Ashrafi revealed modest hydrocarbon reserves of approximately 20-40 million tonnes. The contract lost legal force in March 2000.
