BP signs MOU to develop Azeri fields

LONDON (Reuters) - BP (BP.L) has signed a preliminary deal with Azerbaijan to develop oil and gas fields in the Caspian Sea, the company said on Monday.

BP said in a statement it had signed a memorandum of understanding with Azerbaijan's state oil company SOCAR covering the Shafag and Asiman structures in the Caspian.

The deal was signed in London, in the presence of Azeri President Ilham Aliyev, who is on a state visit to Britain, and Prime Minister Gordon Brown. The exploration block involved covers an area of some 1100 square kilometres and has never been explored before, BP said.