British supermajor BP has announced that it has signed a memorandum of understanding (MOU) with the State Oil Company of the Republic of Azerbaijan (Socar) to jointly explore and develop the Shafag and Asiman structures in the Azerbaijan sector of the Caspian Sea.
The deal gives BP the exclusive right to negotiate a production sharing agreement to explore and develop the block, which lies some 125 kilometres (78 miles) to the south east of Baku.
The block covers an area of some 1100 square kilometres and has never been explored before. It is located in a deepwater section of about 650-800 metres with reservoir depth of about 7000 metres.Â
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