BP registers subsidiary in Azerbaijan to develop ADUA offshore block

MOSCOW. June 16 (Interfax) - The Azerbaijan State Tax Service has registered BP ADUA Limited, a subsidiary of BP plc , to develop the Ashrafi, Dan Ulduzu and Aypara (ADUA) block in the Caspian Sea.

Gary Jones, BP's regional president for Azerbaijan, Georgia and Turkey, has been appointed head of BP ADUA Limited.

"The company will represent BP in the production sharing agreement for the Ashrafi, Dan Ulduzu and Aypara block and will implement this project," the STS said.

BP signed an agreement with the State Oil Company of the Azerbaijani Republic (SOCAR) on the sidelines of Baku Energy Week on June 3 to finalize the acquisition of a 35% participating interest in the ADUA block. SOCAR retained 65% while BP is operator.

BP entered into the production sharing agreement for the ADUA block, signed in 2018.

BP plans to conduct seismic surveys and exploratory drilling at the ADUA block followed by exploratory drilling. If these are successful, the infrastructure for delivering oil or gas from this block can be connected to the existing Azeri-Chirag-Gunashli capacities.

SOCAR and Equinor signed a production sharing agreement for the exploration and development of ADUA on May 31, 2018, and they formed a 50/50 operating company to implement the project. However, in December 2023 Equinor agreed to sell its 50% stake to SOCAR and the deal was closed on April 24, 2024.

SOCAR signed a contract for the development of the ADUA block back in 1997 with BP (30%), Unocal (25.5%), Itochu (20%) and Delta HESS (4.5%). SOCAR's share in this project was 20%. Modest hydrocarbon reserves of about 20-40 million tonnes were discovered during exploration at Ashrafi. The contract became null and void on March 7, 2000.