The PSA was signed by SOCAR President Rovnag Abdullayev and BP’s Group Chief Executive Bob Dudley in the presence of Azerbaijan’s President Ilham Aliyev and UK Prime Minister Theresa May in London.

Abdullayev, addressing the ceremony, said that Azerbaijan has a long tradition of successful cooperation with BP.

“I believe that the synergies between modern upstream technology and unique historical experience, embodied at both companies, create a solid foundation for our continued success. Being based on fair and equal conditions, today’s agreement will become an important milestone in the pursuit of the highest degree of efficiency in the joint development of the hydrocarbon resources of Azerbaijan," he said.

Dudley, for his part, said that this agreement underpins a new joint effort by SOCAR and BP to explore further Caspian opportunities in support of long-term production in Azerbaijan.

"We have now been operating in the region for more than 25 years and believe there is still significant oil and gas potential there. We look forward to continuing to build on our significant business in Azerbaijan, working closely with SOCAR and others to explore and help secure the Caspian’s future for decades to come," he said.

Block D230 lies some 135 kilometers (84 miles) north-east of Baku in the Caspian Sea. It covers an area of some 3,200 square kilometers and has not previously been explored. It has water depths of 400-600 meters and anticipated reservoir depths of about 3,500 meters.

Under the PSA, which is for 25 years, BP will be the operator during the exploration phase holding a 50 percent interest, while SOCAR will hold the remaining 50 percent interest.

The signing of the PSA follows the Memorandum of Understanding for exploration of Block D230, which was agreed in May 2016.

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