British oil giant BP is set to enter the Karabakh oil field development project in the Azerbaijani sector of the Caspian Sea by the end of 2025, according to Bakhtiyar Aslanbayli, BP's Vice President for the Caspian region, according to Report.

"In September 2024, we signed a memorandum of understanding with SOCAR regarding the Karabakh oil field. Currently, within the framework of the memorandum, negotiations and discussions are underway on the terms of BP's entry into the existing agreement for the development of this field," Aslanbayli told reporters.

He said both parties are focused on concluding the negotiation process as soon as possible.

When asked by Report if BP hopes to join the Karabakh project this year, Aslanbayli responded, "Personally, I hope so."

On September 20, 2024, BP and SOCAR signed a memorandum of understanding regarding two offshore areas - the Karabakh oil field and the Dan Ulduzu-Ashrafi-Aypara structure in the Azerbaijani sector of the Caspian Sea.

BP noted then that its participation in the exploration and development of these two offshore areas could accelerate the implementation of these projects through potential synergies.

The Karabakh oil field is located 120 km east of Baku, 20-25 km from the Caspian Guneshli field, at a depth of 150-200 meters. The Ashrafi - Dan Ulduzu - Aypara structure is located 90-110 km northeast of Baku, at a depth of 80-180 meters.

On May 31, 2018, SOCAR and Equinor signed a PSA for the exploration and development of the Ashrafi - Dan Ulduzu - Aypara prospective structures block and a Risk Service Contract for the development of the Karabakh field. SOCAR and Equinor established an operating company on a parity basis to implement the project. However, in December 2023, Equinor sold its 50% stake in these projects to SOCAR. The transaction was closed on April 24, 2024.