BAKU, Azerbaijan (AP) — Azerbaijan's parliament has cleared BP to develop an offshore gas field that may hold up to 500 billion cubic meters of natural gas.
Parliament deputy speaker Valekh Aleskerov said Friday that the production-sharing agreement with the state energy company includes a four-year exploration period and will be valid for at least 30 years.
The block covers an area of around 1,100 square kilometers (425 square miles) and has not previously been explored.
BP Exploration Azerbaijan Ltd. and Azerbaijan's state-owned SOCAR will each control a 50 percent interest in the Shafag-Asiman concession.
The deal is a confidence-booster for BP, whose global reputation has been battered by last year's disastrous oil spill in the Gulf of Mexico.
This is a BP positive. They are the only company doing well in the Caspian Sea area. Ask XOM, COP, SHELL and TOTAL how their investment is doing in this area. Don’t expect smiles. COP is looking for an exit strategy.