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Azeri state energy company SOCAR signed new agreements for oil and gas exploration in Azerbaijan with Exxon Mobil (NYSE:XOM) and BP (NYSE:BP), Reuters reported Monday.
Azerbaijan contains 7B barrels of proven oil reserves and 1.7T cm of proven natural gas reserves, according to the U.S. Department of Energy, but the country’s oil production has been declining for several years after the ACG complex of oilfields passed its peak of 1M bbl/day in 2010.
Exxon (NYSE:XOM) VP John Ardill told Reuters that the company will apply in Azerbaijan its experience in developing unconventional fields, but that it is too early to announce possible volumes.
BP (NYSE:BP) has said it is already working on stemming declining output at producing fields in the Caspian Sea, and its production chief Gordon Birrell said the company is planning to explore for new oilfields in the Azeri Caspian.
BP (BP) also said it made a final investment decision on its 240 MW Shafag solar plant project it is building via its Lightsource bp unit with its joint venture partners Socar and Azerbaijan Business Development Fund, with the company estimating construction costs of $200M and a mid-2027 completion date.