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Azerbaijan's SOCAR to boost its share in new deal with BP on oil fields
September 8, 2017 / 1:08 PM / 13 days ago

Azerbaijan's SOCAR to boost its share in new deal with BP on oil fields

A BP logo is seen at a petrol station in London, Britain January 15, 2015. REUTERS/Luke MacGregor/File Photo

TBILISI/BAKU (Reuters) - Azeri state energy company SOCAR is expected to increase its share in a new production sharing agreement with oil major BP (BP.L) for development of the country’s biggest oilfields, two industry sources familiar with the content of talks on the deal told Reuters.

“According to preliminary information, SOCAR will increase its share at the expense of a share reduction of other companies, including BP,” an industry source, who is aware of the content of the negotiations, told Reuters.

Another industry source, who also is familiar with the content of the talks and did not want to be named, said that SOCAR’s share in a new contract could be increased to 20 percent from the current 11.6 percent, while BP’s share could be reduced to 30 percent from the current 35.8 percent.

“The shares of some other companies might be also reduced,” the source said. The figures in the final contract might still change, the source said.

A spokeswoman for BP in Azerbaijan said: “We don’t have information on the content of the contract now.” A SOCAR spokesman said the company had no immediate comment.

The shareholders in the consortium include BP, SOCAR, Chevron (CVX.N), INPEX (1605.T), Statoil (STL.OL), ExxonMobil (XOM.N), TPAO, ITOCHU (8001.T) and ONGC Videsh (ONVI.BO).

Reporting by Margarita Antidze in TBILISI and Nailia Bagirova in BAKU; writing by Margarita Antidze; editing by Christian Lowe

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