SOCAR and BP Exploration Limited signed an agreement

BP president Mr. Toni Hayword expressed his pleasure for cooperation with SOCAR and noted the regional and global importance of "Azeri-Chirag-Guneshli" and “Shahdeniz” oil and gas projects, Baku-Tbilisi-Jeyhan and South Caucasus pipeline projects. Afterwards, SOCAR President Mr. Rovnag Abdullayev and BP Azerbaijan President Rashid Javanshir signed the agreement on the main commercial principles of the future PSA contract on the development of “Shafag” and “Asiman” perspective structures in the Caspian sector of Azerbaijan. SOCAR and BP signed a memorandum on "Mutual understanding" on the joint geological exploration and development of "Shafag" and "Asiman" in London on July 2009. The date of signing of the contract expires in July this year. According to the document, BP has exclusive rights on the conduction of negotiations on conclusion of the PSA agreement on the exploration and development of the bloc that locates 125 km (78 mils) South-East of Baku City. The bloc covers an area of about 1100 square meters and no exploration was held here yet. The bloc locates at the 650-800 meters sea depth with the depth of the reservoir at 7,000 meters.