BP inks deal for deep Azeri waters

BAKU, Azerbaijan, Oct. 7 (UPI) -- An agreement between BP and the State Oil Company of the Republic of Azerbaijan could lead to new discoveries in the Caspian region, a BP executive said.

British energy company BP and SOCAR announced Thursday that they signed a production sharing agreement on joint exploration at the Shafag-Asiman development in the Azeri waters of the Caspian Sea.

"We in BP very much hope that the combination of our leading technology and expertise with Azerbaijan's experience and potential will lead to new discoveries in the Caspian," BP Chief Executive Officer Bob Dudley said in a statement.

BP has been unloading assets to cover expenses from the Deepwater Horizon oil spill in the Gulf of Mexico. BP remains steady in Azerbaijan, however, approving a $6 billion plan to increase oil production at the offshore Azeri-Chirag-Guneshli oil field early this year.

The 30-year deal with SOCAR gives BP the operator role at the site with a 50 percent stake. The block outlined in the PSA is about 80 miles southeast of the Azeri capital Baku in roughly 2,100 feet of water. The reservoir depth is about 22,000 feet.

Deep-water exploration is under fire in the wake of the Deepwater Horizon accident. The rig was drilling in 5,000 feet of water when a gas eruption triggered an explosion that sank the platform.