Milli Mejlis Ratifies New Contract on Deepwater Part of ACG

Baku / 31.10.17 / Turan: Milli Majlis (Azerbaijan"s Parliament) today ratified a new contract for the development of the deepwater part of the Azeri-Chirag-Gunashli (ACG) oilfield until the year 2050.

The agreement, which was signed on September 14 this year, received the conventional name Contract of the New Century.

It will allow the further development of the ACG block, which currently produces 620,000 barrels of oil equivalent per day.

It is expected that in the next 32 years the project will be invested $ 40 billion. SOCAR"s share in the project is doubled and brought to 25%. In addition, the company will receive about $ 3.6 billion in bonuses.

The equity participation of other companies in the new contract will be: BP (30.37% - operator), Chevron (9.56%), ExxonMobil (6.79%), Indian ONGC (2.31%), Japanese Inpex Corp. (9.31%) and Itochu Oil (3.65%), Norwegian Statoil (7.27%), and Turkish TPAO (5.73%).

The agreement on the ACG block was first signed in September 1994 and its term expires in 2024. Due to the ratification and entry into force of the new agreement, the terms of the first contract are canceled. -06D--

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