The agreement will cover the development of the field until 2050
“BP will remain as the operator of the project. The agreement will allow increase of investments in this project”, he said.
On December 23, 2016 SOCAR (the State Oil Company of the Republic of Azerbaijan) and AIOC (the Azerbaijan International Operating Company) signed a letter of intent (LoI) for the future development of the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.
The agreement will cover the development of the field until 2050 and will add significant resource development potential to the middle of the century. Today ACG produces circa 620,000 barrels of oil equivalent.
The shareholders in AIOC are BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.
The LoI was signed in Baku today by Rovnag Abdullayev, President of SOCAR, on behalf of the Republic of Azerbaijan, and by Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey, on behalf of the AIOC partnership.
The LoI agrees the key commercial terms for the future development of the ACG field and enables the parties to conclude negotiations and finalise fully-termed agreements in the next few months.
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 kilometres. It lies in water depths of between 120 and 170 metres. The depth of the reservoir is 2,000-3,500 metres.
The existing ACG PSA was signed in September 1994 for 30 years. Oil production from the field began in November 1997. To date the field has produced more than 3 billion barrels of oil with around $33 billion of investment.
There are six producing platforms on ACG, linked with a world-class onshore terminal in Sangachal near Baku. From the terminal ACG oil is exported to world markets primarily by the Baku-Tbilisi-Ceyhan oil export pipeline and the Western Route Export Pipeline to Supsa.
BP is the operator acting on behalf of AIOC and the Contractor Parties to the ACG Production Sharing Agreement".