SOCAR hopes to sign a new contract on development of offshore fields Azeri, Chirag and a deep-water section of Guneshli (ACG) in June 2016
This will be a production sharing agreement (PSA), just like the previous one. The contract will be signed with the current project partners, which include BP (35.78%), Chevron (11.27%), ExxonMobil (8%), Indian ONGC (2.72%), Azeri SOCAR (11.65%), Japanese Inpex Corp. (10.96%) and ITOCHU Oil (4.3%), Norwegian Statoil (856%) and Turkish TPAO (6.75%).
Governmental sources told Turan that the newly signed contract will not be a prolongation of the effective contract, which expires in December 2024. The contract will be signed for the period of 25 years, which is till the end of 2041 (the contract has to be approved by parliament to enter into force).
In the new contract the government will have privileges it did not have in the previous one. “The working conditions in Azerbaijan for foreign companies have changes for the better. Their risks are much lower, than they were in the mid-1990s. Thus, the commercial components will be different,” the same source explained.
According to the preliminary conditions, it is planned to build a new production platform for 48 wells on Azeri field as a part of the new contract. It is also planned to expand the operating platforms and drill about 150 wells from them as well as do some other works.
385.6 million tons of oil has been extracted on the ACG till January 1, 2016. It is planned to extract over 900 million tons of oil from the ACG till the end of 2041. Later on the oil extraction could be increased by additional 100-150 million tons, if the latest technologies to increase the reservoir recovery are applied.—0—
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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