First Oil from "Karabakh" Expected in 2029

BP’s Executive Vice President for Production and Operations, Gordon Birrell, shared details of the agreements signed by the company in Baku on June 2–3.

He stated that first oil production from the Karabakh field (where BP has now become the operator) is expected to begin in 2029.

“This is a fairly rapid timeline for the development of a major oil field. The current concept involves creating a new platform that will operate without permanent staff and be remotely controlled. There will be one exploration well, and we won't delay drilling. Oil and gas will be transported to the infrastructure of the neighboring Azeri-Chirag-Gunashli block. This approach makes the project relatively efficient and low-cost,” he explained.

The Karabakh field was originally discovered by Norwegian company Equinor, with reserves estimated at 50–60 million tons of oil. In 2024, Equinor officially exited upstream projects in Azerbaijan, shifting focus to green energy.

Regarding the Shafag-Asiman structure (an agreement was signed with SOCAR and TPAO on June 3), Birrell noted that a second well will be drilled — the first was completed in early 2021.

“Based on data analysis, we concluded the reservoir could be larger than initially expected. Therefore, a second well is necessary to confirm this. If confirmed, a development program will be prepared, and we will begin gas production,” he said.

Following the deal’s completion by the end of Q3 2025, TPAO will hold a 30% interest in the PSA, receiving 15% each from BP and SOCAR. BP will remain the operator during the exploration phase.

As for the Ashrafi-Dan Ulduzu-Aypara (ADUA) block, seismic surveys will be carried out first, followed by exploratory drilling. “If successful, the infrastructure for oil or gas transport will be linked to the existing Azeri-Chirag-Gunashli facilities,” Birrell added.

Overall, BP signed several agreements on June 2–3, including one for a 240 MW solar power plant. “These projects will require several billion US dollars. Azerbaijan remains one of BP’s most important partners, and our presence in the country continues to grow,” he concluded.

N.Tebrizli