SOCAR completed talks on new ACG contract

SOCAR has not determined the term of signing of the contract to finish development of Azeri-Chirag-Guneshli (ACG) fields, said SOCAR President Rovnag Abdullayev.

“The talks have been already completed. We have submitted our proposals to the ACG project partners. They will have to prepare and submit us their final proposals. If the partners agree, then the contract will be signed,” he added.

Abdullayev said that this is not the matter of prolongation of the effective agreement on the ACG project. We are going to conclude a new production sharing agreement (PSA) for a long period and with new terms and conditions.

SOCAR earlier reported quoting its President that the company hopes to sign the ACG contract in June 2016.

* The contract for ACG field development was signed on September 20, 1994 and it became effective on December 12, 1994. The project partners include BP (operator with 35.78%) Chevron (11.27%), ExxonMobil (8%), Indian ONGC (2.72%), SOCAR (11.65%), Japanese Inpex Corp. (10.96%) and ITOCHU Oil (4.3%), Norwegian Statoil (8.56%) and Turkish TPAO (6.75%).—0--