BP has signed a production-sharing agreement with Azerbaijan’s state-owned firm SOCAR for the joint exploration and development of the Shafag-Asiman structure in the Azerbaijan sector of the Caspian Sea.

Under the 30-year agreement, BP and SOCAR will each have 50% in the development of the Shafag-Asiman structure, which is located about 78 miles south-east of the capital Baku.

BP Azerbaijan spokeswoman Tamami Bayatly said the exploration period will include 3D seismic studies and exploration drilling.

The Shafag-Asiman structure may hold potential resources of 65 million tonnes of gas condensate and 500 billion cubic metres of natural gas.