BP, Azerbaijan Ink Production Accord

BP

, the second-largest European oil company, has signed an agreement with the State Oil Company of the Azerbaijan Republic to develop a new oil field in the Caspian Sea. The agreement will be a 50-50 joint production agreement and the first marquee accord of this nature since Robert Dudley became CEO of the British oil giant last Friday. BP is already one of the biggest foreign investors in Azerbaijan and bolstered that footprint earlier this year by acquiring Devon Energy's

assets in the former Soviet republic, according to OilSlick.com. The field BP will explore, Shafag-Asiman, has estimated reserves of 17 trillion cubic feet of natural gas. The two companies will drill at depths up to 2,600 feet.