The Milli Majlis (parliament) of Azerbaijan has ratified a PSA (production sharing agreement) contract on holding joint geological exploration work on potentially promising structures located on the shallow part around the Absheron peninsula in the Azerbaijani sector of the Caspian Sea Apr.14.

The contract has been signed between SOCAR (State Oil Company of Azerbaijan) and BP.
Informing the MPs about the contract, the vice-speaker of the Milli Majlis Valeh Alasgarov said that the contract will cover three stages, namely initial exploration, main exploration, development and production.

He said that the contract period is 23 years. Depending on the progress of work, this period may be extended, Alasgarov said.

BP, which has extensive experience and the appropriate equipment, was charged with exploration, development and production at the site, located on the shallow part around the Absheron peninsula in the Azerbaijani sector of the Caspian Sea, according to the deputy speaker.

He went on to add that SOCAR will monitor the progress of the contract, which will be implemented in accordance with the national interests of Azerbaijan.
Alasgarov said that such contracts are an indication of the fact that implementation of the new oil strategy of Azerbaijan successfully continues.

The mentioned contract focuses on environmental protection, said Alasgarov.
The area covered by the PSA agreement extends along the southern part of the Absheron peninsula. The water depth on this territory is up to 40 meters and the depth of potentially productive stratum is 3,000-5,000 meters.