Azerbaijan’s SOCAR To Boost Its Share In New Deal With BP On Oil Fields

Azeri state energy company SOCAR is expected to increase its share in a new production sharing agreement with oil major BP for development of the country’s biggest oilfields.

“According to preliminary information, SOCAR will increase its share at the expense of a share reduction of other companies, including BP,” an industry source said.

Another industry source, who also is familiar with the content of the talks and did not want to be named, said that SOCAR’s share in a new contract could be increased to 20 percent from the current 11.6 percent, while BP’s share could be reduced to 30 percent from the current 35.8 percent.

“The shares of some other companies might be also reduced,” the source said. The figures in the final contract might still change, the source said.

A spokeswoman for BP in Azerbaijan said: “We don’t have information on the content of the contract now.” A SOCAR spokesman said the company had no immediate comment.

The shareholders in the consortium include BP, SOCAR, Chevron, INPEX, Statoil, ExxonMobil , TPAO, ITOCHU and ONGC Videsh.