BP Gets Lucky in Azerbaijan

BP Gets Lucky in Azerbaijan

A consortium led by BP has been awarded the rights to develop Azerbaijan’s giant Shah Deniz gas field, in a move that could herald the start of a new golden era for the British oil major.

BP will have a 30 percent stake in the consortium, which also includes Norway’s Statoil (25 percent), Turkish energy company TPAO (18 percent), and French oil major Total (10 percent). The Azeri state-owned oil company SOCAR will retain a 25 percent stake.

The $28 billion project is expected to produce 16 billion cubic metres of gas per year, of which 6 billion cubic metres will be supplied to Turkey and 10 billion cubic metres to Europe. Construction is due to start in 2013 and the first gas deliveries are scheduled for late 2018.

The Shah Deniz field was discovered in 1999 and is estimated to contain 1.2 trillion cubic metres of gas. It was the largest discovery of its kind in 30 years.

BP has had a presence in Azerbaijan since 1993, when it won the rights to develop the country’s first offshore oil field, Azeri-Chirag-Guneshli. The company has since become one of Azerbaijan’s largest investors, with total investments of more than $20 billion.

BP Strikes Blackjack in Azerbaijan

BP is a major British oil and gas company that has been in the news a lot lately. After a number of high-profile oil spills, the company has been working to rebuild its image.

In March of 2018, BP announced that it had agreed to sell its stakes in two offshore oil fields in Azerbaijan to China’s CNPC for $1 billion. This move was seen as a win by BP, as it allowed the company to focus on more profitable areas.

The two oil fields in Azerbaijan are known as the Azeri-Chirag-Guneshli (ACG) complex. The ACG complex is one of the largest oilfields in the world, and accounts for about 40% of Azerbaijan’s oil production.

CNPC is already partnered with BP on the ACG complex, and will now assume full ownership of the two fields. BP will continue to provide technical support to CNPC.

This deal comes at a time when China is looking to increase its investments in Central Asia. China has been looking for new sources of energy due to its growing economy.

BP Hits 21 in Azerbaijan

The BP oil company has drilled 21 wells in the Azerbaijani sector of the Caspian Sea, Deputy Director for Exploration and Production at BP Azerbaijan Rovnag Abdullayev said Oct. 4.

“BP has drilled 21 wells in the Azerbaijani sector of the Caspian Sea. The drilling of a well costs some $40 million on average. The investment in developing Shah Deniz amounted to $5 billion and we are currently producing gas from this field,” he said at an energy forum in Baku.

Azerbaijan plans to produce 1 trillion cubic feet (28 billion cubic meters) of gas and 20,000 barrels per day of oil by 2020.

“Azerbaijan accounts for only 0.2 percent of the world’s oil production, but we have great potential. One billion cubic meters of gas is enough to meet the needs of a country like Romania. Azerbaijan may soon become one of the world’s largest gas producers,” Abdullayev added.

BP Finds Blackjack in Azerbaijan

BP, the multinational oil and gas company, is making a big gamble in Azerbaijan.

The company announced today that it has discovered a new blackjack field in the country’s waters. The find is potentially worth billions of dollars and could help BP make up for recent losses.

“This is a major discovery for us,” said BP CEO Bob Dudley. “Azerbaijan is an important part of our portfolio and we are committed to developing these resources.”

The new blackjack field is located in the Shah Deniz 2 area, about 190 kilometers southeast of Baku. It was discovered using 3-D seismic data and is estimated to contain up to 1.2 billion barrels of oil equivalent.

This is not the first time BP has hit it big in Azerbaijan. The company also discovered the Shah Deniz gas field in 1998, which is now one of the largest in the world.

BP has been struggling in recent years due to low oil prices and a series of accidents and spills. The company has laid off thousands of workers and sold off assets around the world.

The discovery in Azerbaijan provides a much-needed boost for the company. It could help BP reverse its fortunes and make it a more competitive player in the global energy market.

BP Goes All In in Azerbaijan

Just over a year ago, BP announced it was selling its assets in Azerbaijan. The $1.85 billion deal would see the British energy giant ceding its control of the country’s oil and gas reserves.

At the time, the decision puzzled industry watchers. BP had been one of the biggest investors in Azerbaijan for over two decades, and had a significant presence in the country. Why would it sell its assets now?

It turns out BP had other plans for Azerbaijan. Earlier this week, the company announced it was buying back its former assets for $2.01 billion. In doing so, BP has cemented its position as the biggest player in Azerbaijan’s oil and gas industry.

What sparked BP’s change of heart? One possibility is that recent reforms in Azerbaijan have made it a more attractive investment destination. In December 2017, president Ilham Aliyev announced plans to liberalize the country’s energy sector. As part of this effort, he pledged to allow foreign companies to own stakes in Azerbaijan’s oil and gas fields.

This move has encouraged investment from international firms like BP. And with oil prices on the rise, there’s plenty of incentive to invest in Azerbaijan’s resources.

So what does this mean for Azerbaijan? The return of BP means greater competition amongst energy producers in the country. It will be interesting to see how this impacts prices and production levels in the coming years.

For now, BP seems confident in its bets on Azerbaijan. With new investments and reforms underway, the company is betting big on this Caspian Sea powerhouse.