A ceremony of signing a new contract for extension of Production Sharing Agreement (PSA) on development of Azeri-Chirag-Guneshli block of oil and gas fields by 2050, is being held in Baku.
President of Azerbaijan Ilham Aliyev, First Lady Mehriban Aliyeva, state and government officials, MPs, ambassadors, representatives of foreign companies are attending the ceremony, APA reports.
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.
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.
BP is the operator acting on behalf of AIOC and the Contractor Parties to the ACG Production Sharing Agreement".
The shareholders in AIOC are BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.