Minister: Shafag-Asiman deal takes Turkish-Azerbaijani energy ties to new level

The recent agreement enabling Türkiye’s national oil company, Turkish Petroleum Corporation (TPAO), to acquire a 30% stake in Azerbaijan’s Shafag-Asiman gas field is set to significantly bolster Türkiye’s energy security, according to Turkish Minister of Energy and Natural Resources Alparslan Bayraktar.

In a statement shared on social media, Bayraktar emphasised the strategic importance of the deal, highlighting that this new partnership will elevate energy cooperation between Türkiye and Azerbaijan to an unprecedented level, per Caliber.Az.

Azerbaycan’la enerji alanındaki stratejik iş birliğimizi Hazar’da kurduğumuz yeni ortaklıkla ileri bir aşamaya taşıyoruz.

BP ve SOCAR’ın hissedarı olduğu Shafag-Asiman sahasına, milli petrol şirketimiz TPAO’nun %30 payla dahil olduğu Üretim Paylaşımı Anlaşması bugün Bakü’de… pic.twitter.com/kdsoEDOQIn

— Alparslan Bayraktar (@aBayraktar1) June 3, 2025

“The inclusion of our national oil company, TPAO, in the Shafag-Asiman project with a 30% share is a crucial step — not only for reinforcing Türkiye’s energy security, but also for enhancing regional cooperation,” Bayraktar wrote.

The agreement was signed on June 3 as part of Baku Energy Week. Under the terms of the deal, TPAO will become a partner alongside the State Oil Company of Azerbaijan (SOCAR) and British energy giant bp. The Turkish company will acquire a 30% interest in the Shafag-Asiman development project in the Azerbaijani sector of the Caspian Sea.

The transaction is scheduled for completion in the third quarter of 2025. Upon closing, TPAO will hold a 30% stake in the Production Sharing Agreement (PSA), having acquired 15% from bp and another 15% from SOCAR. Currently, bp and SOCAR each hold 50% stakes in the project. bp will remain the PSA operator during the exploration phase.

The Shafag-Asiman block, located approximately 125 kilometres southeast of Baku, spans 1,100 square kilometres in water depths ranging from 650 to 800 metres. The structure was first discovered in 1961.

The development contract for the field was initially signed between SOCAR and bp in July 2010 and came into force in June 2011. The agreement provides for a 30-year development period, with the option for a five-year extension.

By Tamilla Hasanova