Lukoil takes on BP stake offshore Azerbaijan

Russian oil company Lukoil announced September 29 that it took on a 25% stake in a shallow-water exploration project off the coast of Azerbaijan from UK energy major BP.

Lukoil acquired the interest in the Shallow Water Absheron Peninsula (SWAP) block in the Azeri waters of the Caspian Sea for an undisclosed term.

BP signed a production sharing agreement for SWAP with the State Oil Company of Azerbaijan Republic (SOCAR) in 2014, a deal that was ratified by the Azeri parliament the following year.

First drilling is expected by the end of the year.

“I am convinced that all the scientific and technical resources gathered by the partners will boost development of the prospective area in the shallow waters of the Absheron Peninsula," Lukoil president Vagit Alekperov said.

BP in July produced an environmental and socio-economic impact assessment (ESIA) for a second well at an exploration project offshore Azerbaijan at SWAP.

“We are pleased to welcome Lukoil to the SWAP partnership, building on our successful relationship in the Shah Deniz project,” BP’s regional president Gary Jones said.

The broader Shah Deniz natural gas field has been in operation since 2008 and pumps gas to Georgia and Turkey and on to the European continent.

Even with the sale, BP stays on as the operator at SWAP with a 25% interest. SOCAR and Lukoil round up the partnership.