bp, SOCAR and TPAO today signed several agreements enabling TPAO to join the production sharing agreement (PSA) for the Shafag-Asiman offshore block in the Azerbaijan sector of the Caspian Sea.
The official signing of the agreements took place today on the sidelines of Baku Energy Week.
The deal is expected to be completed by the end of the third quarter of 2025. Once finalized, TPAO will own a total 30% participating interest in the PSA—15% transferred from bp and 15% from SOCAR. Currently, bp and SOCAR each hold a 50% participating interest in the PSA.
bp will remain the operator of the PSA during the exploration period.
“We are pleased to welcome TPAO into the Shafag-Asiman partnership. This strategic collaboration underscores the importance of regional partnerships in advancing the evaluation and potential development of Azerbaijan’s offshore resources. Together with bp and TPAO, we aim to accelerate the appraisal process, ultimately enhancing energy security and bringing added value to all stakeholders involved,” - stated Rovshan Najaf, president of SOCAR.
The block lies some 125 kilometres to the south-east of Baku and is located in water depths of 650-800 metres. The block is 60km from Shah Deniz and 145km from the Sangachal terminal.
The deal aims to accelerate further evaluation of the block to help identify the most suitable option to progress the project.
"To that end, additional evaluation activities will be carried out, including the drilling of a well into the Lower Surakhany reservoir. To allow for these activities, the exploration period under the PSA will be extended,"- said bp in its statement
Gary Jones, bp’s regional president for Azerbaijan, Georgia, and Türkiye, said this collaboration would bring additional technical and financial capabilities to accelerate exploration and appraisal activities on this structure.
"By joining the Shafag-Asiman partnership alongside SOCAR and bp, Türkiye Petrolleri reaffirms its commitment to building a secure, diversified and sustainable energy future for our nations and beyond. This collaboration brings together SOCAR’s deep local expertise, bp’s advanced technology, and TPAO’s offshore experience. Together, we aim to unlock the full potential of this promising structure in the Caspian Sea," - stated Ahmet Türkoğlu, chairman and CEO of TPAO.
He added that this partnership will create high-value employment and reinforce the Southern Gas Corridor—contributing to regional stability, energy security, and long-term economic growth.
Exploration activities in the block carried out to date include the acquisition, processing, and interpretation of a 3D seismic survey and the drilling of one exploration well (SAX01), completed in 2021. The SAX01 well was drilled to the base of the Fasila reservoir, reaching a depth of 7,189 metres, and confirmed the presence of gas condensate resources in the penetrated reservoirs. The well was then suspended to allow for further evaluation and planning of subsequent activities.
The U.S. has reaffirmed Greenland’s right to decide its own future after reports emerged that private Americans linked to Donald Trump tried to sway...
The Trump administration is proposing new visa rules that could significantly shorten the stay of students, cultural exchange visitors, and journalist...
North Korean leader Kim Jong Un will travel to China next week to attend a military parade marking Japan’s surrender in the Second World War, state ...
Indian Prime Minister Narendra Modi heads overseas on Thursday to meet the leaders of China, Japan and Russia, seeking to build closer diplomatic ties...
Myanmar’s military leader Min Aung Hlaing will travel to China to attend a Shanghai Cooperation Organization summit, state media reported on Thursda...
Azerbaijan’s SOCAR will invest $7 billion in Türkiye’s petrochemical sector, reinforcing its role as the country’s largest foreign investor.
Russian drones deliberately struck a SOCAR oil depot in Ukraine's southern Odesa region for the second time in two weeks on Monday (18 August), according to Ukrainian officials.
SOCAR Türkiye, a subsidiary of the State Oil Company of the Azerbaijani Republic, has announced about a cooperation with Turkish Airlines in the field of sustainable aviation fuel. The move is aimed at complying with Türkiye's goal of reducing aviation emissions by 5% by 2030.
Ukrainian state-owned oil and gas company Naftogaz has signed its first agreement with SOCAR Energy Ukraine, a subsidiary of Azerbaijan’s SOCAR, to import a small volume of natural gas via the Trans-Balkan pipeline.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
Malaysia Prime Minister Anwar Ibrahim said he intends to convene a summit of the Regional Comprehensive Economic Partnership in October, local media reported on Wednesday.
The Organisation for Economic Co-operation and Development (OECD) reported on Tuesday that G20 countries’ international goods trade rose slightly in the second quarter of 2025, mainly because imports into the United States fell sharply after rising in the first quarter.
The S&P 500 closed lower on Monday (25 August) as investors turned their attention to Artificial Intelligence (AI) chipmaker Nvidia’s upcoming quarterly results, following Friday’s rally that saw the Dow Jones Industrial Average close at a record high.
The global market for chemical enhanced oil recovery (EOR) is set to expand significantly over the coming decade. According to Allied Market Research’s 'Global Oil Recovery Market Report,' the market, valued at $900 million in 2021, is expected to grow at an average annual rate of 4.6%, reaching $1.
British American Tobacco (BAT) is preparing to sell its first disposable vape in the U.S. reversing years of opposition to unauthorised devices amidst a booming $8 billion market for synthetic nicotine products.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment