In September 2017, the Azerbaijan government, SOCAR and international oil companies signed a contract to extend the production-sharing agreement (PSA) for the Azeri-Chirag-Gunashli (ACG) field until 2049, Fitch Ratings reported.
‘ACG is the main oil field in Azerbaijan, accounting for 76% of total Azeri oil output in 2016. We view the deal extension as positive for Azerbaijan and SOCAR. The company sells the government's share of crude oil (profit oil) received under PSAs on behalf of the state and transfers the respective funds to the State Oil Fund of Azerbaijan (SOFAZ). The fund then pays grants to the government, SOCAR and other state-related entities underlining the strength of ties between SOCAR and the state’, the agency said’.