- Turkey’s TPAO will hold a 30% stake in the Shafaq-Asiman offshore block under a new production-sharing deal with SOCAR and BP.
- The agreement marks a key step in expanding Turkish energy operations in Azerbaijan.
Turkey’s state oil company, TPAO, will sign a gas production-sharing agreement with Azerbaijan’s SOCAR and BP for the Shafaq-Asiman offshore block in the Caspian Sea, Turkey’s Energy Minister Alparslan Bayraktar announced on Monday, June 2, 2025.
At the Baku Energy Week conference, Bayraktar emphasised the agreement’s significance in strengthening Turkey’s energy partnership with Azerbaijan. “Today, we are taking further steps with the signing of a major agreement that will increase our oil and gas production in Azerbaijan,” he said.
The Shafaq-Asiman block, located approximately 125 kilometres (78 miles) southeast of Baku, lies at water depths ranging from 650 to 800 metres. According to SOCAR’s official website, the area presents promising gas reserves, and the first exploration well was drilled in 2020.
Under the terms of the upcoming agreement, TPAO will hold a 30% stake in the project, while SOCAR and BP will retain the remaining shares. The Turkish Energy Ministry confirmed that the signing ceremony will occur on Tuesday. In addition, Bayraktar revealed that talks are ongoing for cooperation in other fields, signalling broader collaboration in the Caspian region.
The deal reflects Turkey’s growing role in regional energy projects and its strategy to diversify energy sources through international partnerships. TPAO’s involvement in Shafaq-Asiman aligns with Ankara’s long-term vision to strengthen energy security and secure future gas supplies through exploration and joint ventures.
The agreement also reinforces the strategic energy alliance between Turkey and Azerbaijan, two countries that have deepened their cooperation in recent years in infrastructure, pipelines, and energy trade. With this new development, all three partners—TPAO, SOCAR, and BP—are expected to accelerate exploration and potential production in the Caspian basin.