Wednesday February 21 2024

Azerbaijan to get first bonus payment on new ACG deal in January

30 December 2017 12:36 (UTC+04:00)
Azerbaijan to get first bonus payment on new ACG deal in January

By Trend

Azerbaijan will receive the first bonus payment on the new agreement on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea on Jan. 31, 2018, according to the Chamber of Accounts' conclusion on the SOFAZ budget for 2018.

According to the budget of SOFAZ, approved Dec. 28, the Fund’s revenues for 2018 are set at 11,559,956,200 manats. At the same time, in the revenue structure, bonuses paid by investors within oil and gas deals or in connection with their execution are set at 774.172 million manats.

“In accordance with the new ACG deal, international partner companies will pay $3.6 billion as bonuses to SOFAZ,” reads the document. “This is while the payment of the first part of the bonus in the amount of $450 million or 774 million manats is scheduled for Jan. 31, 2018. Another $0.1 million will be received in the form of bonus payment within the Shah Deniz project.”

A contract for developing the ACG field was signed in 1994. A ceremony to sign a new contract on development of the ACG block of oil and gas fields was held in Baku Sept. 14, 2017.

The new ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.

(1.7001 manats = $1 on Dec. 29)

Latest See more