Exclusive: BP’s stake in giant Azeri oilfields set to fall: sources

9 Sep 2017   Azerbaijan

BP’s stake in Azerbaijan’s vast oilfields is expected to shrink under a new production-sharing agreement with state energy company SOCAR, two industry sources familiar with the talks told Reuters. Azerbaijan plans to sign a new contract with BP next week on development of the giant Azeri-Chirag-Guneshli (ACG) oilfields that will run until 2050. The fields are the largest oilfields in the Azerbaijan sector of the Caspian basin. An existing deal is due to expire in 2024 and a BP-led consortium and SOCAR signed a letter of intent in December to continue development of the oilfields until 2050 in a move to unlock billions of dollars of fresh investment. “According to preliminary information, SOCAR will increase its share at the expense of a share reduction of other companies, including BP,” an industry source aware of the negotiations told Reuters. Another industry source, who also is familiar with […]

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