Azerbaijani Government to Receive 80% of High-gravity Oil produced in Country - President
Azerbaijan, Baku, 4 March / Trend corr A. Ismayilova/ Within several months, Azerbaijan will be receiving 80% of the Azeri Light oil which is produced at the Azeri-Chirag-Gunashli (ACG) field, the Azerbaijani President Ilham Aliyev, who is currently visiting the Khanlar region of the country, said on 4 March. The remaining 20% of the oil will go to the foreign sector of the projects.
The high-gravity oil produced from the ACG is shared between the Azerbaijani Government and the foreign partners on the project on the basis of R-factor envisaged in the PSA which was signed in 1994. The R-factor changes depending on the world oil prices. In 2007, Azerbaijan was receiving only 30% of the oil produced from the field and its foreign partners were receiving 70%. According to several reports, since 1 January 2008 Azerbaijan has been receiving 55% of the Azeri Light oil from the ACG and its foreign partners 45%.
"Other oil producing countries achieve such distribution of the oil within 50-60 years.
The sides to the production sharing agreement on Azeri-Chirag-Gunashli field are BP (operator- 34.1%), Chevron (10.2%), SOCAR (10%), INPEX (10%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), ITOCHU (3.9%) and Hess (2.7%).