Socar and BP’s consortium to extend the development of Azeri-Chirag-Gunashli oilfields until 2050

26/12/2016 10:52 Oil Market


Azerbaijan’s energy major SOCAR and BP-operated Azerbaijan International Operating Company (AIOC) signed a deal to extend the development the Azeri biggest fields by a quarter of century to 2050.

The existing Azeri-Chirag-Gunashli (ACG) production sharing agreement (PSA) was signed in September 1994 for 30 years. Oil production from the field began in November 1997.


To date, the field has produced more than 3 billion barrels of oil with around $33 billion of investment. BP ‘s consortium and Azeri state oil firm SOCAR on Friday signed a letter of intent to continue developing the giant ACG offshore fields until 2050.


The original contract was due to expire in 2024. The shareholders in the consortium include BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh. ACG is known as the “Contract of the Century” and is very important to Azerbaijan - it is the symbol of Azeri oil industry.


ACG is a super-giant field located about 100 km east of Baku. It is the largest producing oil field in the Caspian Sea and covers an area of more than 432 square kilometers.

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