The United States extends its congratulations on the signing of an extension of the Production Sharing Agreement for the Azeri, Chirag, and Guneshli (ACG) project, the US embassy in Azerbaijan said in statement.
This is a great day for Azerbaijan and for the partners, including those from the United States, developing the ACG offshore oilfields.
The original PSA, which was signed in 1994, was called the “Contract of the Century,” and today’s signing of the new agreement is equally momentous. The ACG PSA, which developed the Azeri, Chirag, and Guneshli offshore oilfields, and the subsequent formation of the Azerbaijan International Operating Company (AIOC) were landmarks in international oil and gas development, as well as a great success for international energy security and for Azerbaijan.
The United States has actively supported the development of the oil and gas resources in Azerbaijan and elsewhere in the Caspian Basin since the early 1990’s, seeing their development and their secure delivery to European and other markets as key to boosting economic prosperity and global energy security. The importance of developing these hydrocarbon resources and the role they play in the international security picture continues to be recognized and underlined by the United States today. This reality was clearly demonstrated in President Trump’s May 28 letter expressing his best wishes for the 24th International Caspian Oil and Gas Exhibition and Conference, and Secretary of State Tillerson’s statement conveying the United States’ support for the Southern Gas Corridor at its February Advisory Council meeting.
American oil companies have remained among the original participants in the AIOC consortium, and in the late 1990s, the United States provided strong political and financial support for the Baku-Tbilisi-Ceyhan (BTC) pipeline, which carries oil from ACG and other Caspian fields to world markets. American oilfield equipment and services companies also have played a key role in the implementation of these projects. After BTC, our cooperation led to construction of the South Caucasus Pipeline, which now delivers Caspian gas to Georgia and Turkey.
More recently, the United States has worked closely with Azerbaijan, Georgia, Turkey, and other countries in developing the Southern Gas Corridor, which will enhance European energy security still further by creating a new source and route for gas supply to European consumers.
All of these projects have not only unlocked Caspian resources for the world, they also have fueled Azerbaijan’s economic growth.
As Azerbaijan enters the threshold of a new and even more promising phase of energy development, we look forward to continuing to work with you to develop new oil and gas resources and in bringing them to market. The United States has long been a partner of Azerbaijan in major strategic projects in the oil and gas sector and we remain so, just as the United States has been a longstanding partner in Azerbaijan’s overall development, in the growth of its non-oil sectors, and in realizing the new Silk Road.
As President Trump noted earlier this year: “I value the partnership the United States and Azerbaijan have built together over the last quarter of a century and look forward to its continued growth.”
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