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Industry majors ink Azerbaijan E&P

Written by  AOG Staff Thursday, 14 September 2017 07:53
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The Azerbaijan government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh signed an agreement on the joint development and production sharing (PSA) for the Azeri and Chirag fields, and the deepwater portion of the Gunashli field (ACG) in the Azerbaijan sector of the Caspian Sea. 

BP said it will remain the operator as part of the contract. The international co-venturers will pay a bonus of US$3.6 billion to the State Oil Fund of the Republic of Azerbaijan, and SOCAR will increase its equity share in the ACG PSA from 11.65-25%. During the next 32 years, there is the potential for more than $40 billion capital to be invested in the ACG oil field.

Rovnag Abdullayev, SOCAR president said, “Since the signing of the first PSA in 1994, ACG has benefited from $33 billion of investment, producing around 440 million tonnes of oil, and delivering directly more than $125 billion of net profit to our country.”

ACG has also delivered over 30 Bcm of associated gas to the government of Azerbaijan. ACG currently has eight offshore platforms – six production platforms and two process, gas compression, water injection and utility platforms. The platforms export oil and gas to the Sangachal terminal, onshore near Baku.

Following completion of the contract, the new ACG participating interests will be as follows: BP (30.37%), SOCAR (25%); Chevron (9.57%), INPEX (9.31%), Statoil (7.27%), ExxonMobil (6.79%); TP (5.73%), ITOCHU (3.65%) and ONGC Videsh (2.31%).

Image: ACG fields' production platform / BP

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