PJSC LUKOIL announced that it has acquired 25% participating interest in the Shallow Water Absheron Peninsula (SWAP) exploration project in the Azerbaijan sector of the Caspian Sea from the British multinational oil and gas company bp.

This acquisition was the result of an agreement between LUKOIL and bp. The deal will move forward once it is approved by Azerbaijan’s government and should be complete before the end of 2021.

In accordance with the agreement, bp will hold 25% of the project’s interest and will remain the operator of the project, even after the sale is complete.

“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,” PJSC LUKOIL President Vagit Alekperov said. “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,” he added.

Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkey, commented “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 program, which, if successful, will deliver value to Azerbaijan and to our partnership,” said Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkey.”