BP, Azerbaijan extend oilfield contract

BP, Azerbaijan extend oilfield contract

He said Azerbaijan and the United Kingdom demonstrate that they are reliable partners.

The new era begins in the development of giant Azeri, Chirag, Gunashli oil fields, said President Ilham Aliyev addressed a ceremony on the signing of the agreement 14 at the Heydar Aliyev Center on September.

Hailing the signing of the contract as a historical event, the head of state called it a contract of the new century.

The development of the ACG block helped Azerbaijan achieve high GDP growth rates in a short time, and as a result, the poverty level sharply decreased in the country.

In addition, new agreement opens up prospects for export of new technologies to Azerbaijan, opening of new jobs and the country's acquiring the long-term title of the West's reliable energy partner, which will henceforth build relations with its partners exclusively on own conditions.

BP, like its peers, has sharply cut spending over the past three years following a drop in oil prices, slashing costs for projects and laying off thousands of employees. "Today Azerbaijan is recognized in the world as a country, which stands on its feet and has broad global relations, and as an influential country". The new contract, which awaits parliamentary ratification, is effective through the end of 2049.

Following the completion of the contract, the new ACG participating interests will be as follows: BP - 30.37 percent; AzACG (SOCAR) - 25.00 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; and ONGC Videsh Limited (OVL) - 2.31 percent.

As part of the agreement, SOCAR and its co-venturers will advance the engineering development work to weigh an additional production platform in the ACG contract area.

The project will deliver an estimated 16 billion cubic meters (bcm) of gas to Georgia, Turkey, Greece, and Italy.

"We will see all seven projects come on through 2017 and lay the foundation towards 800,000 barrels per day of new production by 2020", Dudley said. The consortium started development drilling of the Chirag field in August 1997 and the first oil was produced in November 1997.

ACG now has eight offshore platforms - six production platforms and two process, gas compression, water injection and utilities platforms.

Baku, Fineko/abc.az. President of the State Oil Company of Azerbaijan (SOCAR) Rovnag Abdullayev announced the country's profit from the sale of profit oil from the Azeri-Chirag Gunashli field.

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