...

Azerbaijani oil & gas projects interest foreigners despite price fluctuations (UPDATE)

Oil&Gas Materials 25 April 2017 17:11 (UTC +04:00)
Fluctuations in oil prices don’t affect the interest of foreign investors in the oil and gas sector of Azerbaijan.

Details added (first version posted on 13:19)

Baku, Azerbaijan, Apr. 25

By Leman Zeynalova – Trend:

Fluctuations in oil prices don’t affect the interest of foreign investors in the oil and gas sector of Azerbaijan, said Vitaliy Baylarbayov, deputy vice-president of SOCAR for investments and marketing.

He made the remarks at ‘The 2nd SOCAR International Caspian and Central Asia Downstream Forum – Trading, Logistics, Refining, Petrochemicals’, held in Baku Apr. 25.

“Despite the fluctuations in oil prices, our projects continue to be significant for foreign investors,” said Baylarbayov.

He expressed confidence that in the future, direct foreign investment in Azerbaijan’s oil and gas sector will further grow as a result of implementation of the second and third stages of development of the Shah Deniz field, as well as the continuation of development of the Azeri-Chirag-Gunashli block.

According to the deputy vice-president of SOCAR, in total, as of today, $220 billion has been invested in Azerbaijan’s oil and gas industry since 1995.

Baylarbayov said that as of late 2016, investments of $30 billion have been put in the development of the Azeri-Chirag-Gunashli block of fields.

“In particular, over 400 wells have been drilled at the block,” he noted. “Over the past few years, oil production decreased by 7-10 percent. I think this process will stabilize by 2020,” added SOCAR’s deputy vice-president.

A contract for development of ACG block of oil and gas fields was signed in 1994. The proven oil reserves of the block near one billion tons.

The shareholders in the project are BP (operator of the Azeri-Chirag-Gunashli, 35.78 percent), Chevron (11.28 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).

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest