TPAO close to joining Caspian Sea Shafag-Asiman exploration partnership

bp, SOCAR and TPAO signed agreements June 3 that will lead to TPAO joining the production sharing agreement (PSA) for the Shafag-Asiman offshore block in the Azerbaijani sector of the Caspian Sea.

According to bp, this should help speed up evaluation of the block, including preparations for drilling a well into the Lower Surakhany reservoir. To accommodate these activities, the PSA’s exploration period will be extended.

The transaction should go through by the end of September, with TPAO gaining a 30% interest in the PSA. Then bp and SOCAR will each hold a 35% share, with bp remaining operator during the exploration period.

Exploration to date has included acquisition, processing and interpretation of a 3D seismic survey and drilling of the exploration well SAX01, completed in 2021. The well was drilled to the base of the Fasila reservoir, confirming the presence of gas condensate resources. It was then suspended to allow for further evaluation and planning.

bp and SOCAR signed the PSA for joint exploration and development of the block in October 2010. The location is 125 km southeast of Baku in water depths of 650 m to 800 m, 60 km from the Shah Deniz Field, and 145 km from the Sangachal terminal.

The partners commissioned a 3D seismic acquisition survey over the contract area in 2012. Interpretation of the dataset was completed in 2015, followed by selection of the exploration well location and planning of drilling activities.

bp has also completed its acquisition of participating interests in two further offshore exploration and development blocks in the Azerbaijani sector of the Caspian Sea, after finalizing agreements with SOCAR.

One block contains the Karabagh oil field, 120 km east of Baku, and 20 km to 25 km from the Gunashli Field in water depths of 150 m to 200 m. An existing risk service agreement (RSA) for the development of the field was signed in 2018. 

The other block is the Ashrafi – Dan Ulduzu – Aypara (ADUA) area, 90 km to 110 km northeast of Baku in water depths of 80 m to 180 m, with numerous discoveries and prospective structures. The PSA for the ADUA area was entered into in 2018. 

bp has acquired 35% shares in both the RSA and PSA from SOCAR, and will operate. SOCAR will retain a 65% interest.