Shafag-Asiman

Location

The project is situated offshore, approximately 125 kilometers southeast of Baku, Azerbaijan, in the Caspian Sea. The coordinates for the project area are approximately 39.6988, 51.0366 (WGS 84).

Ownership and Operation

The project is jointly owned and operated by BP and the State Oil Company of Azerbaijan Republic (SOCAR), each holding a 50% interest. The Production Sharing Agreement (PSA) for the Shafag-Asiman block was signed between BP and SOCAR in October 2010.

Discovery and Exploration

The Shafag-Asiman field was initially discovered in 1961, but significant exploration activities have been undertaken more recently. After 14 months of drilling, BP and SOCAR announced a major gas condensate discovery in March 2021 at a depth of nearly 7,200 meters. This discovery is seen as a potential boost for the Southern Gas Corridor, which supplies gas to European markets.

Project Status

The project is currently in the development phase. While the first exploration well (SAX01) has been successfully drilled, further activities, including the drilling of additional wells, are being planned. The project is expected to start production in 2031.

Reserves

The Shafag-Asiman field holds significant hydrocarbon reserves:

• Condensate reserves: approximately 432.23 million barrels as of 2023.
• Gas reserves: approximately 500 million cubic meters as of 2023.

Environmental and Socio-Economic Impact

An Environmental and Socio-Economic Impact Assessment (ESIA) was conducted for the Shafag-Asiman Exploration Drilling Project. This assessment identified potential environmental impacts and proposed mitigation measures to minimize disturbances to the environment, including marine life, air, and other natural resources. The project adheres to environmental standards and complies with national and international regulations.

Development Plans

Following the successful drilling of the first well, plans are underway to drill additional wells, including a lateral well in the direction of the structure's arch. The project's development will contribute to the growth of Azerbaijan's proven hydrocarbon reserves and support the energy security of the country and other regions through the Southern Gas Corridor.

Significance

The Shafag-Asiman project is crucial for BP's strategy in Azerbaijan, particularly as the company plans to reduce its global oil and gas production by 40% by 2030. The project aligns with BP's continued commitment to the region and its cooperation with SOCAR to explore and develop Caspian oil and gas resources.

In summary, the Shafag-Asiman Oil and Gas Project represents a significant investment in Azerbaijan's energy sector, with substantial reserves and a strategic role in the Southern Gas Corridor, enhancing energy security for both Azerbaijan and European markets.