Azerbaijan’s SOCAR seeks to renew deal on ACG
By Gulgiz Dadashova
Azerbaijan’s energy giant SOCAR has announced its intention to sign a new agreement with existing partners to develop the Azeri-Chirag-Guneshli block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
The company announced that the issue was mulled in a meeting of representatives of SOCAR and Azerbaijan’s oil fund SOFAZ with the partner companies on the ACG - BP, Statoil, Exxon Mobil, Shevron, Itochu, INPEX, TPAO and ONGC Videsh.
"Representatives of BP and other partners appreciated the stable investment and business climate in Azerbaijan. They also emphasized the effectiveness of long-term cooperation with SOCAR, naming the company as a reliable partner," the company reported.
BP and its partners conducted prolonged technical discussions with SOCAR on the further development of the ACG project. The sides noted that the "Azeri", "Chirag" and a deep-water part of "Guneshli" still have a high potential reserves, according to the company.
The sides also studied the effectiveness of the joint development of hydrocarbon resources in the ACG following the expiry of the current PSA.
The existing PSA contract for ACG expires in 2024.
“The sides also noted the possibility of signing a new PSA contract to further develop the ACG with existing partners,” the company said adding that it has been welcomed by BP and its partners.
The meeting also agreed on the coordination of steps to be taken in the future.
The contract for the development of Azeri-Chirag-Guneshli large offshore field in the Azerbaijani sector of the Caspian Sea, with proven oil reserve of nearly 1 billion metric tons, was signed in 1994.
The main volume of oil produced in Azerbaijan falls on Azeri-Chirag-Guneshli offshore fields block. This block produces Azeri Light oil with a sulfur content of 0.15 percent (35 degrees API).
Shares in the contract for development of Azeri-Chirag-Guneshli block of fields are distributed as follows: BP (operator in Azeri-Chirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itochu - 4.3 percent and ONGC - 2.72 percent.
BP and its partners produced 16 million metric tons (116 million barrels) during the first half of 2015 on ACG block, which is the same as in the first half of 2014. Daily oil production in the ACG for the period amounted to 641,000 barrels.
In 2014, British BP and partners extracted 31.5 million metric tons of oil (233 million barrels) against 32.2 million metric tons of oil (239 million barrels), extracted in 2013 on a block of Azerbaijani oil and gas fields Azeri-Chirag-Guneshli.
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