BAKU, Azerbaijan, Aug. 17 (UPI) -- The acquisition of a stake in a Caspian Sea oil field lays the foundation for a strategic position in Azerbaijan, officials at British oil company BP said.
BP completed the acquisition of a minor stake in the Azeri-Chirag-Gunashli field in the Azeri waters of the Caspian Sea from Devon Energy. The stake is split between other partners, including U.S. supermajor Chevron.
The deal announced Tuesday completes a deal announced in March between BP and Devon.
"The acquisition of the additional interest in Azerbaijan is part of BP's commitment to the Caspian region as a core strategic area where we already hold a strong position and intend to enhance this significantly in the future," Rashid Javanshir, president BP Azerbaijan, said in a statement announcing the deal.
A steering committee from BP approved a $6 billion plan in April to increase oil production at the offshore oil field.
Baku oil production was up for 2010, with the bulk of the production coming from the ACG field.
Most of the estimated 7 billion barrels of proven oil reserves in Azerbaijan lie in the ACG field, listed as the world's third largest.
