BP and Socar, the state oil company of the Republic of Azerbaijan, have signed a memorandum of understanding (MOU) to jointly explore potential prospects in block D230 in the North Absheron Basin in the Azerbaijan sector of the Caspian Sea.

As part of the government’s plan to ensure that all of Azerbaijan’s offshore waters are fully explored this MOU gives BP the exclusive right to negotiate an agreement with Socar to explore and develop block D230, BP said on Wednesday.

The MOU was signed in Baku on Wednesday, May 25, 2016, by Rovnag Abdullayev, President of SOCAR, on behalf of the government of the Republic of Azerbaijan, and Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey.

Rovnag Abdullayev said: “Today we are signing a new Memorandum of Understanding which will lay the foundation of a new offshore project. This will become another opportunity underpinning our long-term relationship with BP.”

Birrell said: “This is an important day for both Azerbaijan and BP. It continues the cooperation that will enable us to work together to ensure the long term future for Azerbaijan’s oil and gas production through exploring new opportunities.”

Block 230 covers areas in a water depth of up to 300 metres with the reservoir depth of 3000-5000 metres.