BP and SOCAR signed a major new production sharing agreement at a high-level meeting in London.
BP group chief executive Bob Dudley and SOCAR president Rovnag Abdullayev
the agreement to develop a new offshore oil and gas field on 26 April, as UK PM Theresa May and Azerbaijani President Ilham Aliyev looked on. The 25-year contract gives BP and SOCAR equal 50% interests in an offshore field called Block D230, 84 miles northeast of Baku in the Caspian Sea.
while Ilham Aliyev was in London on a state visit. During a bilateral meeting with Theresa May, the leaders reportedly discussed security concerns and human rights, as well as the energy contract.
Ilham Aliyev was recently re-elected President of Azerbaijan in a snap election that received
from international observers. The Azerbaijani press
that May “congratulated President Ilham Aliyev on his victory in the presidential election” while, according to Downing Street’s
, the British PM merely diplomatically “said that she was pleased that [Aliyev] had chosen the visit the UK so soon after his inauguration.”
BP and SOCAR
their first production sharing agreement in 1994 to develop the Azeri-Chirag-Deepwater Guneshli (ACG) field in the Caspian Sea. Last year the ACG agreement was extended until 2050 in a deal that included a $3.6 billion bonus for Azerbaijan. The first tranche of the bonus ($450 million)
to the State Oil Fund of Azerbaijan (SOFAZ) on 29 January 2018.