Baku, February 5, AZERTAC

BP Azerbaijan will start three-dimensional seismic studies on the potentially prospective structures located in the shallow waters of the country’s Absheron Peninsula from March 1, BP Azerbaijan said.

It was stated at the public hearings on the Environmental Impact Assessment (EIA) report, which took place in Baku February. 4.

The contract area covers 1,900 square kilometers from the coastline till the sea depths up to 25 meters.

In November and December 2015, the Caspian Geophysical company conducted 2D research at a depth of over 10 meters. Starting from March, the Geokinetics company will begin the 3D seismic research at a depth of up to 10 meters and onshore. The territory of the 3D research will cover 1,520 square kilometers offshore and onshore and it is divided into five zones. Both local and foreign experts and companies will take part in the seismic research.

The relevant agreement was signed between British BP and Azerbaijan’s state energy company SOCAR on December 22, 2014. This agreement is part of the government's plan to fully explore all the coastal areas of the Azerbaijani sector of the Caspian Sea.

The contract area is divided into five priority areas in which researches will be conducted alternately. The territory covered by the agreement, extends along the Absheron Peninsula’s southern part and covers an area of about 1900 square kilometers. In this area the sea depth is about 25 meters, and the depth of the bedding of the potentially productive strata - 3000-5000 meters.

The agreement’s term is 23 years with possible extension. It provides for parity (50%) participation of both sides.

The agreement takes into account all SOCAR’s risks, as the Company will undertake commitments on financing its share only if BP finds a prospective structure within the exploration works, confirms the availability of commercially profitable volume of oil at such structure and prepares a program of the field development within 6 month term. Only in this case the SOCAR will start meeting its liabilities. In other cases, if the efficiency of the field is not confirmed or if it’s not found, SOCAR will not cover expenses of the second party.