Turkey’s TPAO, SOCAR, and BP launch new project

Turkey's state oil company TPAO will sign an agreement on June 3 with the State Oil Company of Azerbaijan (SOCAR) and British Petroleum (BP) to join the development of the Shafag-Asiman gas field in Azerbaijan’s sector of the Caspian Sea.

This was reported by haqqin.az, citing sources in Azerbaijan’s oil and gas industry.

In an interview with TRT Haber, Turkey’s Minister of Energy and Natural Resources Alparslan Bayraktar expressed hope that the agreement would be signed in Baku this week, with TPAO acquiring a 30% stake in the project.

The project has been effectively frozen since 2021 due to the complex geology of the exploration area and high costs. In the first quarter of 2021, exploration drilling at the SAX01 well revealed the first gas condensate reserves at the Shafag-Asiman structure. Caspian Drilling Company carried out drilling at a sea depth of 623 meters, reaching the productive "Fasila" formation.

The Shafag-Asiman block covers an area of 1,100 square kilometers and is located 125 km southeast of Baku, in waters ranging from 650 to 800 meters deep. The structure was initially identified during seismic surveys in 1961.

The production-sharing contract for the block was signed between SOCAR and BP in July 2010 and came into force in June 2011. Each party holds a 50% stake. The contract is valid for 30 years with an option to extend for another 5 years.

3D seismic surveys have been conducted at the structure. Estimated reserves stand at 500 billion cubic meters of gas and 65 million tons of gas condensate.

"This is a highly challenging project. TPAO’s intention to join enhances its prestige and international standing, particularly amid its increased global activity since early 2025," one source noted.

It remains unclear whether TPAO’s involvement will lead to the discovery of new gas and gas condensate fields.

Earlier, Minister Bayraktar said that TPAO would receive a 30% stake in the Shafag-Asiman project.

"Our partners are SOCAR and BP. We aim to further expand our cooperation with Azerbaijan in Caspian projects," he said.

Bayraktar emphasized that energy projects between Turkey and Azerbaijan contribute to Europe's energy security and expressed hope for new gas supply projects from alternative sources.

N.Tebrizli