Contract on ACG fields to be extended in June

By Azernews

By Gunay Camal

A  fully-termed agreement on further development of the Azeri-Chirag-Gunashli (ACG) in the Azerbaijani sector of the Caspian Sea will be extended next month, said Gary Jones, BP regional president for Azerbaijan, Georgia and Turkey in Baku on May 31.

ACG is a super-giant field located about 100 km east of Baku. It is the biggest producing oil field in the Caspian Sea and covers an area of more than 432 square kilometers. The field lies in water depths of between 120 and 170 metres. The depth of the reservoir is 2,000-3,500 metres.

Azerbaijan’s state oil company SOCAR and BP-operated Azerbaijan International Operating Company (AIOC) signed an agreement on future development of the ACG field on December 23 2016. The agreement will cover the development of the field until 2050 and will add significant resource development potential.

The document agreed the key commercial terms for the future development of the ACG field and enabled the parties to conclude negotiations and finalize fully-termed agreements in the next few months.

The existing ACG PSA was signed in September 1994 for 30 years. Oil production from the field began in November 1997.

BP Azerbaijan operates the development of the ACG block. The contract for development of the ACG block was signed in 1994 for a period of 30 years.  Shareholders of the project are BP (35.78 percent), Chevron (11.27 percent), Inpex (10.96 percent), AzACG (11.65 percent), Statoil (8.55 percent), Exxon (8 percent), TPAO (6.75 percent), Itochu (4.3 percent) and ONGC (2.72 percent).