Oil major BP plc (BP) has inked a new production sharing agreement (PSA) with the State Oil Company of the Republic of Azerbaijan (SOCAR) relating to joint exploration of shallow water Absheron Peninsula.
PSA was signed by Rovnag Abdullayev, president of SOCAR, on behalf of government of the Republic of Azerbaijan, and Gordon Birrell, BP's regional president for Azerbaijan, Georgia and Turkey.
BP and SOCAR intend to explore and develop potential prospects in the shallow water area around the Absheron Peninsula. The PSA forms a part of the Azerbaijan Government’s strategy to ensure that all of the country's offshore areas are fully explored.
The PSA area covers the stretch from the Caspian basin margins to the south of the Absheron Peninsula. Lying in water depths of about 40 meters, the acreage has potential reservoir depths of 3,000–5,000 meters.
BP is one of the world's major energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. Previously, the company reported earnings through three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate.
The company also maintains a leading position among global offshore drillers. Its strategy of offloading non-core upstream properties will prove beneficial over time, creating a portfolio with a potential for stronger growth from a smaller base.
SOCAR engages in exploring oil and gas fields, producing, processing and transporting oil, gas and gas condensate in Azerbaijan.
The company trades in petroleum and petrochemical products in domestic and international markets and supplies natural gas to the industry and the public.
BP carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks worth consideration include Spectra Energy Partners, LP (SEP), Seadrill Partners LLC (SDLP) and Sandridge Mississippian Trust II (SDR) all of which sport a Zacks Rank #1 (Strong Buy).
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