Caspian Energy Journal Caspian European Club
Thursday, 14 September 2017 14:00

$40bn more to be invested in the Contract of the Century, - bp Featured

$40bn more to be invested in the Contract of the Century, - bp

According to the new PSA agreement on Azeri-Chyrag-Gunashli fields signed in Baku today, during the next 32 years there is the potential for more than $40bn capital to be invested in the ACG oil field. The net profit from the ACG development comprised $125bn.

Subsequent to the new contract, SOCAR and its co-venturers have also agreed to progress engineering development work to evaluate an additional production platform in the ACG contract area, Caspian Energy News ( reports with reference to the press statement of bp.

Rovnag Abdullayev, SOCAR President, said: “Today is a significant day for Azerbaijan. It brings back the days, when we signed “The Contract of the Century”. Despite the challenging political and economic conditions of that time, thanks to the intense effort by our national leader Heydar Aliyev the first ACG contract was signed, laying the foundation of the future economic development of Azerbaijan. Since the signing of the first PSA in 1994, ACG has benefited from $33bn of investment, producing around 440 million tonnes of oil, and delivering directly more than $125bn of net profit to our country. Finalizing the negotiation process between SOCAR and the partner companies today, we have signed the new contract on the ACG project on agreed terms. The new contract is effective until the end of 2049. The terms of the new contract will take effect following their ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan, which will enable us to maximize the economic benefits for our country from ACG over the next 32 years. The terms of the new contract reflect the growing financial and technological potential of Azerbaijan and SOCAR”.

The new ACG participating interests will be as follows: BP, 30.37 per cent; AzACG (SOCAR), 25.00 per cent; Chevron, 9.57 per cent; INPEX, 9.31 per cent; Statoil, 7.27 per cent; ExxonMobil, 6.79 per cent; TP, 5.73 per cent; ITOCHU, 3.65 per cent; and ONGC Videsh Limited (OVL), 2.31 per cent.  

Person in charge of the newsline: Fidan Isayeva

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