BP Does Not Rule Out the Possibility of Developing Gas Reserves at the Karabakh Field
BP plc, in addition to oil production, plans to consider the possibility of developing the gas reserves of the Karabakh field in the future, said Colin Allan, Vice President for Finance in the Azerbaijan, Georgia, and Turkey region, at the Baku Energy Forum.
“Although at present we are predominantly focused on developing the oil resources of this field, gas resources have also been discovered here, and in the future, we will consider the possibilities for their development,” Allan said.
He recalled that on June 3, the company signed an agreement to participate in the development project of the Karabakh field.
Earlier, Gordon Birrell, Executive Vice President of Production and Operations at BP plc, stated that BP expects to start producing the first oil from the Karabakh field in 2029.
The geological reserves of oil at the field are estimated at more than 60 million tonnes, with recoverable reserves of 21 million tonnes of oil and 13 billion cubic meters of gas.
As reported, BP plc acquired a 35% equity stake in the projects to develop the Karabakh field and the Aipara-Dan Ulduzu-Ashrafi structures in the Azerbaijani sector of the Caspian Sea.
The agreements formalizing the deal were signed on June 3, 2025, between BP and the State Oil Company of Azerbaijan (SOCAR) as part of the Baku Energy Week. SOCAR retained the remaining 65% stake in the projects. BP will serve as the operator for both projects.
For the Karabakh field, the British company joined the existing Risk Service Contract, while for the Aipara-Dan Ulduzu-Ashrafi block, it joined the Production Sharing Agreement (PSA) signed in 2018.
On September 20, 2024, SOCAR and BP signed a Memorandum of Understanding on two offshore areas—the Karabakh oil field and the Aipara-Dan Ulduzu-Ashrafi structure in the Azerbaijani sector of the Caspian Sea.
The Karabakh field is located 120 km east of Baku, 20-25 km from the Caspian Gunashli field, at a depth of 150-200 meters. The Aipara-Dan Ulduzu-Ashrafi structure is located 90-110 km northeast of Baku, at a depth of 80-180 meters.
