The Azerbaijan government and SOCAR, together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh on September 14, 2017, signed the agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field (ACG) in the Azerbaijan Sector of the Caspian Sea.
The contract was signed in Baku in the presence of Azerbaijan´s President Ilham Aliyev and Rovnag Abdullayev, CEO of SOCAR, and by the representatives of the co-venturer companies.
As part of the contract, the international co-venturers will pay a bonus of $3.6 bln to the Azeri State Oil Fund and SOCAR will increase its equity share in the ACG PSA from 11.65% to 25%.
During the next 32 years, there is the potential for more than $40 bln capital to be invested in the ACG oil field.
Following completion of the contract, the new ACG participating interests will be as follows: BP, 30.37%; AzACG (SOCAR), 25.00%; Chevron, 9.57%; INPEX, 9.31%; Statoil, 7.27%; ExxonMobil, 6.79%; TP, 5.73%; ITOCHU, 3.65%; and ONGC Videsh Limited, 2.31%.
Subsequent to this contract, SOCAR and its co-venturers have also agreed to progress engineering development work to evaluate an additional production platform in the ACG contract area.
Rovnag Abdullayev, SOCAR CEO, said: «Today is a significant day for Azerbaijan. It brings back the days, when we signed the ‘Contract of the Century’. Since the signing of the 1st PSA in 1994, ACG has benefited from $33 bln of investment, producing around 440 million tonnes of oil, and delivering directly more than $125 bln of net profit to our country.»
Bob Dudley, CEO of BP, said: «Today’s contract is perhaps an even more important milestone in the history of Azerbaijan as it ensures that over the next 32 years we will continue to work together to unlock the long-term development potential of ACG through new investments, new technologies and new joint efforts to maximise recovery.»
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