BP and Azerbaijan’s state energy company Socar have ended prolonged negotiations with an agreement setting out plans for development of the Azeri-Chirag-Guneshli (ACG) oilfield in the Caspian Sea into the middle of the century.

The letter of intent, agreed in late December, is expected to be followed by detailed contracts in the coming months.

It follows lengthy negotiations on how to proceed beyond the existing 30-year development contract running out in 2024.

ACG