Azerbaijan’s state oil company SOCAR has agreed with BP-led consortium AIOC, to extend development until 2050 of the largest producing oil field in the Caspian Sea, the British firm said.
The agreement will cover the development of the Azeri-Chirag-Gunashli (ACG) super-giant field located about 100 km east of Baku field and will add significant resource development potential to the middle of the century, BP said in a statement. Currently, ACG produces about 620,000 barrels of oil equivalent.
BP is the operator acting on behalf of AIOC, (the Azerbaijan International Operating Company) with other shareholders being Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.
The existing development contract with Socar for ACG 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.
“We have been in negotiations with ACG’s foreign partners for some time. We will complete fully-termed agreements in the near future. ACG… is very important to Azerbaijan - it is the symbol of our oil industry. It has opened up a whole new era for the country’s development,” said Rovnag Abdullayev, president of Socar.
Gordon Birrell, BP’s regional president for Azerbaijan, Georgia and Turkey said, “This agreement will enable future investments and projects, and will bring many thousands of jobs in the years ahead.”
There are six producing platforms on ACG, linked with an onshore terminal in Sangachal near Baku. From the terminal ACG oil is exported to world markets primarily by the Baku-Tbilisi-Ceyhan oil export pipeline and the Western Route Export Pipeline to Supsa.