BP and SOCAR (the State Oil Co. of the Republic of Azerbaijan) have signed a memorandum of understanding (MOU) to jointly explore and develop the Shafag and Asiman structures in the Azerbaijan sector of the Caspian Sea. As part of the government’s plan to ensure that all of Azerbaijan’s offshore waters are fully exploited, this MOU gives BP the exclusive right to negotiate a production sharing agreement to explore and develop the block, which lies some 125km to the SE of Baku. The block covers an area of some 1100sq/km and has never been explored before. It is located in a deepwater section of about 650-800m with reservoir depth of about 7000m
