3rd Jun 2025 13:13
(Alliance News) - BP PLC on Tuesday said it has signed agreements with its partners to expand its oil and gas interests in Azerbaijan, supporting the growth of its upstream business and underscoring its commitment to the nation.
The London-based oil and gas producer said the series of agreements, signed during Baku Energy Week, will pave the way for growth and further production, while enhancing its partnership with state-owned oil firm Socar, as well as with the country.
The agreements, said BP, include the final investment decisions pertaining to the next significant development phase of the Shah Deniz gas field, and for two projects that it expects to enable operational emissions reductions.
Together with its partners, BP said it has approved the next phase of development of the Shah Deniz gas field, which is operated by BP and in which it has a 29.99% participating interest. This USD2.9 billion project, said BP, aims to both access and produce low pressure gas resources, "increasing resource recovery and extending production life."
It expects the project to receive first gas in 2029.
The green light was also given for the development of the linked Shafag solar and Sangachal terminal electrification projects.
It expects these projects to aid in the reduction of operational emissions in Azerbaijan through the use of terminal electrification, "which will also free for export the gas currently used to fuel the turbines generating power for the terminal".
Shares in BP were down 0.3% at 362.10 pence on Tuesday afternoon in London.
In addition, BP said it has finished an agreement with Socar to access two Caspian Sea blocks for the purposed of exploration and development. It will possess a 35% working interest, becoming the operator of each block, with Socar retaining 65%.
The two parties have also agreed for Turkey's national oil company, TPAO, to obtain a 30% interest in the production sharing agreement for the Shafag-Asiman block in the Caspian Sea. It sees this speeding up development evaluations of the block's opportunities.
BP said: "These agreements represent progress against BP's strategy to grow long-term shareholder value, contributing to its goal of growing its upstream business, as well as underlining BP's continuing commitment to Azerbaijan."
BP Executive Vice President Gordon Birrell commented: "We are deeply proud of the long and successful partnership that BP has built with Azerbaijan over more than 30 years. As can be seen by the agreements we signed this week, we continue to see many opportunities for further development and growth. As we deliver our strategy of growing our upstream, we will build on our strong positions in regions like Azerbaijan, and on the deep relationships we have with the government and our partners."
By Christopher Ward, Alliance News reporter
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