Azerbaijan: The deal to extend oilfield to 2049 signed by BP-led partners and SOCAR

18/09/2017 11:40 Oil Market

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A deal has been signed between the Azerbaijan government, the State Oil Company of Azerbaijan (SOCAR) and BP-led partners for the Azeri, Chirag, and deepwater Gunashli field (ACG) in the Caspian Sea. 

The agreement will be valid until the end of 2049 if ratified by the Parliament. 

 

BP will act as the operator of the field under the extended ACG PSA, which includes the following partners: Statoil, Chevron, INPEX, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.  

 

The associates’ participating interest will be revised as part of the agreement, with BP owning 30.37% stake, Chevron and Statoil with 9.57% and 7.27% respectively. The stake of SOCAR might be increased from 11.65% to 25%.


The investment in the ACG oil field is forecasted to increase to $40 billion over the next 32 years.


As mentioned by Bob Dudley, the BP group chief executive, this type of contract has transformed Azerbaijan in terms of energy supply to Europe, marking a milestone in the history of the country, contributing to the long-lasting development of the potential of ACG, as it brings new technologies, new investments and new joint efforts to maximize recovery.


As such, SOCAR and its co-partners will make steps towards the development of engineering work to weigh an extra production platform in the ACG contract region. 

 

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