Russian LUKOIL said last week that it has signed an agreement with British multinational oil and gas company, bp, to buy a 25% stake in the Shallow Water Absheron Peninsula (SWAP) exploration project in the Azerbaijan section of the Caspian Sea. Following approval by the Azerbaijani government, the deal is expected to be completed by the end of 2021.

Following the sale, bp will continue to operate the project as the operator, with a 25% stake. With a 50% stake in the project, SOCAR, the Azerbaijan Republic’s State Oil Company, is the third party.

Commenting, PJSC LUKOL President, Vagit Alekperov, said: “LUKOIL’s joining of the project of bp and SOCAR falls in line with both Russia’s and Azerbaijan’s national interests related to the evolvement of international cooperation in energy domain. I am convinced that all the scientific and technical resources gathered by the partners will boost development of the prospective area in the shallow waters of the Absheron Peninsula.”

Also commenting, bp’s regional president for Azerbaijan, Georgia and Turkey, Gary Jones, said: “We are pleased to welcome LUKOIL to the SWAP partnership, building on our successful relationship in the Shah Deniz project. We look forward to working closely with them and SOCAR on the exploration work programme, which, if successful, will deliver value to Azerbaijan and to our partnership.”