Over $100 billion invested in Azerbaijan's oil and gas sector so far

19 September 2019 16:27 (UTC+04:00)

 

By Leman Mammadova

The development of Azeri Chirag Gunashli (ACG) fields, which laid the foundation for the development of oil production and exports in Azerbaijan, keeps continuing investors.

So far, $101 billion has been invested in Azerbaijan’s oil and gas sector, said Rovnag Abdullayev, President of SOCAR, in his article published in the official press.

Of this, $36 billion alone has been invested in the development of a block of ACG fields.

Abdullayev noted that the total investments in Azerbaijan’s economy amounted to approximately $265 billion.

“Over the past 25 years, gas production in Azerbaijan has increased 5 times, over the past 11 years - by 30.3 percent,” reads the article.

At the same time, gas exports increased by more than 5 times over the past 11 years.

Abdullayev noted that gas production growth in Azerbaijan is expected at 20 percent in 2019. “The same high dynamics of gas production growth will continue in subsequent years,” he said.

“Azerbaijani sector of the Caspian Sea is rich in hydrocarbon reserves. We expect good results from gas production not only at Shah Deniz, but also at the Absheron, Karabakh, Umid fields. In addition, there are great expectations for the structures of Babek, Shafag, Asiman, Ashrafi, Dan Ulduzu, Aypara,” added.

Additional gas volumes from new, promising gas sources can play an exceptional role in expanding the capacity of Southern Gas Corridor, which will deliver Azerbaijani gas to European markets.

Abdullayev stressed that Azerbaijan sets new goals for the development of chemical industry and gas processing, the replacement of imported products by domestic production.

He pointed out that over the past 10 years, SOCAR's assets have increased more than 4 times, the turnover - more than 26 times.

Proven oil reserves of ACG block are estimated at 1.2 billion tons, while gas reserves make 350 billion cubic meters. A contract for the development of ACG block of fields was signed in 1994 for 30 years. The new agreement signed in 2017 provides for the development of the field until 2050.

ACG participating interests are as follows: BP (30.37 percent), SOCAR (25 percent), Chevron (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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