Caspian Energy Journal Caspian European Club
Thursday, 15 June 2017 22:30

UK could use the experience of Azerbaijan - Tim Eggar Featured

In the interview with Caspian Energy the former British Energy Minister, the participant in the ceremony of signing the contract of the century on September 20, 1994 (the Production Sharing Agreement on exploration, development and production sharing at Azeri, Chyrag and Deepwater Gunashli fields) Tim Eggar especially emphasized the outstanding achievements of the National Leader of Azerbaijan Heydar Aliyev, his contribution to the global energy security, geopolitical stability. According to Tim Eggar, much is being talked about this in the western world, “when Heydar Aliyev was looking at how and with which countries and companies to strike agreements, he made a very important, remarkable decision. The decision to distribute participation interests between different companies from different nations was very important for geopolitical reasons, but I think one of the things that I found best remarkable was the decision to create a state oil fund”. “If we think back in the early 1990s, at that time Azerbaijan was a country without financial resources, but Heydar Aliyev foresaw a time when oil and gas reserves would run out. He took a far-sighted decision to create the State Oil Fund of Azerbaijan, which currently accumulates as many funds as the total level of Azerbaijan's GDP. So, it was a very far-sighted decision for that time and it was carried through. I think this is an amazing decision for the future of Azerbaijan, which will secure a decent future for many generations. And, of course, I wish we had it created, using the experience of your country”, Tim Eggar said.

It should be noted that being the first country in the world that started thinking about its vital security and independence going hand in hand with energy, Azerbaijan was the first to show to the world the reality of alternative thinking in this highly traditionalist and stereotyped sphere of the world economy. “Azerbaijan is at the crossroads of Europe and Asia, and for this reason Azerbaijan is obliged to build up good relations with the countries of both Europe and Asia, with all countries of the world”, Heydar Aliyev (September 20, 1994). These words voiced by the National Leader of Azerbaijan Heydar Aliyev at the ceremony of signing the contract of the century in Baku were fundamental for the subsequent implementation of the oil and gas strategy and multi-way energy export from the Caspian region to world markets. A total of 33 PSA contracts were signed, of which 22 PSAs are offshore agreements with the companies from 16 countries.

Azerbaijani oil has reached the world markets though three oil export routes. Azerbaijan is successfully implementing the contract of the 21st century - the Shah Deniz gas condensate field development project. “Today, the gas factor is the main factor in ensuring energy security and energy independence of the countries worldwide”, President of Azerbaijan Ilham Aliyev says. In one of his speeches the head of state highlighted that energy security is a matter of national security for our country - “the proven gas reserves of Azerbaijan stand at 2.6 trillion cubic metres. The Shah Deniz Stage 2 is 93% completed. The second project is the South Caucasus pipeline, which is 85% completed. The third stage is the Trans Anatolian Natural Gas Pipeline (TANAP), which is 72% completed and the last stage is the Trans Adriatic Gas Pipeline (TAP), which is 42% completed”.

The ACG agreement was signed on September 20, 1994 and took effect on December 12, 1994.

Oil production at Azeri-Chyrag-Gunashli fields began in November 1997.

The project operator has invested a total of $66 billion in Azerbaijan. 8 offshore platforms and 3 drilling rigs were built. The length of subsea pipelines reached 1,900km. The maximum carrying capacity of BTC makes 1.2 million barrels per day. Transportation via the Southern Gas Corridor averaged 19.9 million cubic meters of gas per day in 2016.

The ACG participating interests are as following: BP owns 35.78% (operator), SOCAR – 11.65%, Chevron – 11.27%, Inpex – 10.96%, ExxonMobil – 8.0006%, Statoil – 8.56%, TPAO- 6.75%, Itochu – 4.3%, ONGC Videsh Ltd - 2.72%.

Read 1629 times