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British supermajor BP has resolved to finish its participation in a shallow water exploration venture in Azerbaijan regardless of initially excessive expectations from nation’s authorities,.
Nevertheless, the corporate stays hopeful in regards to the prospectivity of two different deepwater Caspian Sea tracts.
Talking in Baku, BP head of Caspian communications & advocacy Bakhtiyar Aslanbayli, mentioned three exploration wells drilled within the Shallow Water Absheron Peninsula (SWAP) block in 2021 and 2022 didn’t hit business hydrocarbons.
“Authorities in Azerbaijan and the venture companions have been knowledgeable accordingly”, information company Interfax Azerbaijan quoted Aslanbayli as saying.
The asset will probably be relinquished as soon as sure authorized circumstances are fulfilled, he added.
In September 2021, BP had already diminished its publicity in SWAP by promoting half of its 50% stake within the venture to Russian oil producer Lukoil, though it retained operatorship.
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Azeri state-owned oil and fuel producer Socar holds the remaining 50% stake on this exploration venture.
The SWAP exploration space stretches alongside the margins of the Caspian basin to the south of the Absheron peninsula.
Water depths vary as much as 40 metres, with potential reservoirs at depths of between 2000 and 5000 metres.
BP had earlier recognized three potential areas within the acreage – North Khali, Bibi-Heybat East and Garabatdag – every of which have been drilled.
Socar and BP had not responded to a request from Upstream to substantiate particulars of the asset being relinquished.
A manufacturing sharing settlement on the SWAP block was signed on the finish of 2014 to mirror sturdy hopes from Azerbaijan that will probably be in a position so as to add shallow water hydrocarbon reserves to already found deepwater offshore fields.
In keeping with Aslanbayli, BP stays upbeat on the prospects of its deepwater Shafag-Asiman block within the Azeri sector of the Caspian Sea after a primary exploration properly hit an accumulation of hydrocarbons on the depth of about 7000 metres.
Socar mentioned in an announcement that it’s at the moment engaged on a plan to spud a sidetrack within the accomplished properly to penetrate the dome of the suspected reservoir.
BP and Socar are companions on this licence which occupies round 1100 sq. kilometres to the southeast of Baku in water depths between 650 and 800 metres.
Each companions signed an settlement on Shafag-Asiman in 2010. Nevertheless, drilling began solely in January 2020 and suffered the suspension of a number of months due to coronavirus.
Aslanbayli mentioned that the corporate continues preparations to spud one other exploration gap on one other long-term goal in Azerbaijan, the D230 block.
This tract covers round 3200 sq. kilometres and lies about 80 kilometres from the Azeri shore in water depths ranging between 100 and 800 metres.
Each property have additionally sturdy hopes connected to them.
BP hopes that D230 might host massive oil reserves, whereas Shafag-Asiman might doubtlessly show comparable in scale to the corporate’s Shah Deniz fuel subject that holds largest fuel reserves in Azerbaijan.
Azerbaijan’s long run function as an oil and fuel provider to Europe has been just lately given a robust increase following the go to of president of European Fee Ursula von der Leyen who signed a memorandum of understanding to double the nation’s fuel deliveries to the continent by 2027.
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