Energy major BP (BP) will become the operator of the offshore Babek natural gas field in Azerbaijan under an agreement expected to be announced next week, Reuters reported on Wednesday, citing three industry sources.
BP already has extensive oil and gas operations in the South Caucasus nation, whose energy resources have gained greater strategic importance for Europe as the region has moved to reduce its reliance on Russian energy supplies.
Azerbaijan's state energy company SOCAR and BP are reportedly set to announce the agreement on June 1.
The Babek field is estimated to contain around 400 billion cubic meters of natural gas and 80 million metric tons of condensate.
The field is currently part of a SOCAR-led development unit but will become a separate project operated by BP under the new arrangement, the report said.
BP and SOCAR did not immediately respond to requests for comment by.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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