SOCAR, BP eye further joint projects

By Azernews

By Ayya Lmahamad

Azerbaijan’s State Oil Company President Rovnag Abdullayev and BP Chief Executive Officer Bernard Looney have discussed the possibilities of further acceleration of a number of joint projects, during the meeting on November 11.

The parties discussed the further acceleration of joint projects, in particular, aimed at ensuring the sustainable development of existing fields. They also discussed such issues as joint efforts to discover new fields and the efficient operation of pipelines.

Emphasizing the importance of the meeting between Azerbaijani President Ilham Aliyev and representatives of BP, Abdullayev spoke about the positive dynamics of relations between the two companies.

It was noted that maintaining a commitment to this partnership and achieving successful results is an indicator of optimal strategic approach and effective joint actions.

The sides underlined that the completion by SOCAR and BP of a very complex and large project, such as the Southern Gas Corridor, on time, with high quality and low cost is considered an international example.

BP CEO Looney said that relations between the company and SOCAR were very close and fruitful, adding that the cooperation model created by joint efforts was developing at the highest level.

He noted that the successful continuation of the Azeri-Chirag-Guneshli project for almost 30 years, the Shah Deniz project for 20 years, and the production of four billion barrels of oil under the Contract of the Century. he described the projects as the vivid manifestation of steady and fruitful cooperation.

The president of BP expressed his determination to continue the business relationship, to maintain and increase production, and to continue efforts to explore new fields.

Looney is on a two-day planned working visit to Azerbaijan. On November 11, Looney met President Aliyev. They discussed developments in BP’s core oil and gas business in the region. He reiterated BP’s commitment to Azerbaijan and the region, sharing the company’s plans for long-term partnership and its intention to explore new opportunities for cooperation in the energy transition, including renewable energy projects in the region.

It should be noted that BP and its partners signed Azerbaijan's first Production Sharing Agreement with SOCAR in 1994 to develop the Azeri, Chirag and Guneshli (ACG) fields. Production under the agreement began in 1997, and more than four billion barrels of oil have been produced from these fields since then.

In 2017, SOCAR and ACG partners signed an amended and revised PSA extending the agreement until the end of 2049.

SOCAR and BP cooperate in the development of the Shah Deniz gas condensate field as well as the Baku-Tbilisi-Ceyhan and Southern Gas Corridor pipelines. Recently, the cooperation between the two companies has expanded due to new exploration projects in the Shafag-Asiman fields, as well as in the shallow waters of the Absheron Peninsula.