BAKU, Sept. 20 (Xinhua) -- BP and the State Oil Company of Azerbaijan Republic (SOCAR) signed a memorandum of understanding (MOU) on Friday to formalize BP's intention of joining agreements for the exploration and development of two oil blocks in the Azerbaijani sector of the Caspian Sea, BP reported.

The MOU was announced during a ceremony in Baku, marking a significant step in expanding the long-standing partnership between the two companies, and coinciding with the 30th anniversary of the "Contract of the Century," a landmark agreement that laid the groundwork for Azerbaijan's oil industry.

The first block involved is the Karabagh oil field, situated approximately 120 km east of Baku and 20 to 25 km from the Gunashli field. It operates at water depths of 150 to 200 meters. An existing risk service agreement (RSA) for the development of this field was signed in 2018 with SOCAR currently holding a 100 percent interest.

The second block encompasses the Ashrafi -- Dan Ulduzu -- Aypara (ADUA) area, located 90 to 110 km northeast of Baku at depths ranging from 80 to 180 meters. This area includes existing discoveries and prospective structures. An exploration and production sharing agreement (PSA) for the ADUA area was also signed in 2018, with SOCAR holding full rights.

Rovshan Najaf, SOCAR's president, expressed enthusiasm about the partnership: "We are delighted to further expand our strategic partnership with BP through this MOU, particularly on the 30th anniversary of the signing of the 'Contract of the Century'."

Gary Jones, BP's regional president for Azerbaijan, Georgia and Türkiye, highlighted the significance of the agreement: "We see this as another great opportunity to work jointly with SOCAR adding to our 30-year-long exceptionally successful partnership."

In addition to the agreements related to the Caspian Sea, SOCAR and BP also announced their intention to explore potential cooperation in international oil and gas upstream projects aimed at enhancing security of energy supplies. Enditem

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