Turkish state oil company TPAO has joined a production-sharing agreement (PSA) with Azerbaijan’s SOCAR and bp for the Shafaq-Asiman offshore block in the Caspian Sea.
The PSA marks an expansion of Turkey’s energy cooperation with Azerbaijan and reflects the country’s strategic efforts to diversify its energy sources.
At the Baku Energy Week conference, TPAO’s general manager, Melih Han Bilgin, highlighted the importance of the collaboration.
“Today, we are taking further steps with the signing of a major agreement that will increase our oil and gas production in Azerbaijan,” he said.
The Shafaq-Asiman block is located approximately 125km south-east of Baku at water depths of 650m–800m and is thought to hold promising gas reserves.
The first exploration well in the area was drilled in 2020, according to SOCAR.
Under the forthcoming agreement, TPAO will secure a 30% interest in the project, while SOCAR and bp will maintain the majority shares.
TPAO will purchase a 15% stake from bp and a 15% interest from SOCAR.
At present, bp and SOCAR each hold 50% interests in the PSA. BP will remain the PSA operator during the exploration period.
In addition to this agreement, Han Bilgin revealed ongoing discussions for further cooperation in other areas, signalling an expansion of the strategic energy alliance between Turkey and Azerbaijan.
This deal is a testament to Turkey’s growing influence in regional energy projects and its pursuit of international partnerships to bolster energy security.
In April this year, TPAO partnered with three Pakistani national energy companies to bid in Pakistan’s offshore oil and gas exploration tender.
