BP Set to Develop Shafaq-Asiman Offshore Field
BP is on the verge of signing a deal to develop a significant offshore natural gas field in Azerbaijan
The Financial Times is reporting that an agreement to develop the Shafaq-Asiman field, which is 125km south-east of Baku and in deep water, is expected to be signed on Thursday. Bob Dudley, the new BP chief executive and his predecessor Tony Hayward, are in Baku to hold meetings with representatives of SOCAR, the Azerbaijan national oil company.
The deal, which has been under discussion for some time, is expected to be structured as a 50:50 production-sharing agreement over 30 years. The offshore gas field has estimated reserves of 17,000bn cu ft, according to SOCAR, which would put it on a par with its huge Shah Deniz gas field in which BP has a 25.5 per cent stake.
BP is the largest producer in Azerbaijan and one of the largest investors in the country, operating the ACG oilfield and the Baku-Tbilisi-Ceyhan pipeline.