bp acquires stakes in two strategic Caspian Sea blocks

In an expansion of its upstream portfolio, bp has completed the acquisition of participating interests in two offshore exploration and development blocks in the Azerbaijan sector of the Caspian Sea.

The transaction was formalized on June 3 in Baku through the signing of agreements between bp and the State Oil Company of the Azerbaijan Republic (SOCAR), coinciding with Baku Energy Week, Caliber.Az reports per the company.

The acquisition includes a 35 per cent participating interest in both the Karabagh oil field and the Ashrafi–Dan Ulduzu–Aypara (ADUA) block, with SOCAR retaining a 65 per cent stake in each. Under the terms of the agreements, bp will assume operatorship of both the Risk Service Agreement (RSA) and the Production Sharing Agreement (PSA) governing these assets.

The Karabagh oil field, situated approximately 120 kilometres east of Baku and 20–25 kilometres from the prolific Gunashli field, lies in water depths of 150 to 200 metres. The RSA for Karabagh was originally signed in 2018 and outlines plans for the phased development of the field.

The ADUA area, also covered by a 2018 PSA, lies 90–110 kilometres northeast of Baku in shallower waters ranging from 80 to 180 metres. It encompasses multiple hydrocarbon discoveries and prospective exploration structures, offering promising opportunities for further development and potential future production.

The agreement was signed by Rovshan Najaf, President of SOCAR, and Gary Jones, bp’s regional president for Azerbaijan, Georgia, and Türkiye. Both parties pointed out the strategic importance of the transaction in advancing Azerbaijan’s offshore energy potential and deepening the longstanding partnership between SOCAR and bp.

By Vafa Guliyeva