BP Advances Azerbaijan Energy Growth with New Major Project

BP, which has for many years prioritized the development of green technologies and the reduction of reliance on hydrocarbons, has recently begun to increase its investments in oil and gas. The company has acquired an equity stake in two blocks in the Caspian Sea, from Azerbaijan's state-owned company SOCAR. This acquisition was announced at the Baku Energy Week event, where BP-Azerbaijan released a statement.

BP will operate the development of the Karabakh field, located 120 kilometers east of Baku and at a depth of 150 to 200 meters, as well as the Ashrafi-Dan Ulduzu-Aipara (ADUA) prospect, situated 90 to 110 kilometers northeast of Baku and ranging from 80 to 180 meters. In each of these ventures, BP has acquired a 35% stake from SOCAR, while SOCAR retains the remaining shares. Previously, Norway's Equinor had planned to participate in these projects. However, in 2023, Equinor sold its stake in these projects to SOCAR.

BP's strategy, published in 2020, envisaged a 40% reduction in hydrocarbon production, accompanied by a rapid increase in renewable energy projects. However, in February last year, the company revised its production reduction plan, reducing it from 40% to 25%. It then announced plans to completely abandon the cuts.

The company is now looking to new projects in the Middle East and Gulf of Mexico in order to increase oil and gas output. For instance, it has signed an agreement with the Iraqi government to take part in the development and restart of several large oil fields. This includes sections of the Kirkuk field and three neighbouring fields - Bai Hassan, Jambur, and Habbaz - which are currently managed by NOC.

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