New Caspian Exploration for SOCAR and BP

In Baku on October 7 SOCAR and BP signed a contract on starting exploration work in two segments – Asiman and Shapag –in the Azerbaijani sector of the Caspian Sea. The parties have equal shares of the contract which has a 30 year term with a possible 5 year extensions. The exploration should take about 4 years. Initially one well will be drilled, two more will possibly follow. According to a preliminary evaluation these segments of the Caspian Sea have more than 500 bln cubic meters of gas reserves. Special technology will be used before drilling can begin at the site. The current agreement was preceded a memorandum of understanding between BP and SOCAR signed in July 2009 in London.