SOCAR and BP announced today that the first exploration well was spudded on the Shafag-Asiman offshore block in the Azerbaijan sector of the Caspian Sea on 13 January. SOCAR and BP each hold 50% equity interest. BP is operator during the exploration phase of the project. Drilling is conducted by SOCAR’s Caspian Drilling Company.

The SAX01 well is the first to be drilled in the contract area and is in accordance with the PSA that was ratified by the Azerbaijani parliament in 2011.

The well is planned to reach total depth of up to 7000 metres, which is expected to take around nine months, and following this, well data will be analysed and, if successful, an evaluation programme may be conducted to confirm the results.

Rovnag Abdullayev, president of SOCAR, said: “A while back, we have successfully completed seismic study in the Shafag-Asiman block with our partner BP. Now we are embarking on the next step, and starting to drill an exploration well. The exploration drilling will allow to fully uncover the block’s potential. We are proud that today Azerbaijani companies -SOCAR’s business units provide all key services, including the construction of platforms and jackets as well as drilling, for such complex projects, as Shah Deniz, Azeri-Chirag- Gunashli and Shafag-Asiman. We consider this as one of the most important achievements of Azerbaijani oil workers during the era of national independence.”

Gary Jones, BP’s Regional President for Azerbaijan, Georgia and Turkey, said: “We are excited and proud to be embarking on this first exploration well on the Shafag-Asiman offshore block structure which has great potential and which, if successful, could be a gas discovery of significant scale. A great deal of preparation has been made to assure a safe and robust drilling programme, delivered by an expert and motivated team using a drilling rig with managed pressure drilling capability.”

The well is being drilled from the Heydar Aliyev semi-submersible rig operated by the SOCAR’s Caspian Drilling Company (CDC). The rig was contracted for the SAX01 well in November 2019 and then moved to the well location in preparation for the commencement of drilling operations.

Notes:

- The Shafag-Asiman PSA between SOCAR and BP on joint exploration and development of the Shafag-Asiman offshore block in the Azerbaijan sector of the Caspian Sea was signed in Baku in October 2010.
- The block lies some 125 kilometres (78 miles) to the South-East of Baku. It covers an area of some 1,100 square kilometres. It is located in water depths of 650-800 metres.
- The block is 60km from Shah Deniz and 145km from the Sangachal terminal.
- 3D seismic acquisition programme was conducted on the contract area in 2012.
- Interpretation of the seismic dataset was completed in 2015 followed by the selection of the first well location and planning for drilling activities.

About SOCAR

SOCAR is one of the leading international energy companies. In order to ensure the economic interests of the Azerbaijani people, SOCAR is a major operator and participant in a number of transnational projects across the country and abroad. The company is active in all the oil and gas industry value chains. Exploration of oil and gas fields, production, processing and transportation of oil, gas and gas condensate constitute the main part of the operations of SOCAR. SOCAR also exports natural gas, oil and petrochemical products to the country's market, as well as international markets. The company's goal is to become a vertical integrated international energy company with advanced experience in the field of effective operation, social and environmental responsibility. As an important EU energy supplier, SOCAR plays a special role in the sustainable economic development of Europe.

About BP

BP (NYSE:BP) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.