Assets of Azeri-Chirag-Guneshli fields development project to be transferred to state
Azerbaijan, Baku, Aug. 9 /Trend, E.Ismayilov/
According to forecasts, the process of official transfer of assets within the Azeri-Chirag-Guneshli oil and gas fields block development project to the state ownership can be completed by the end of the year, a source at the State Oil Fund of Azerbaijan (SOFAZ) said Tuesday.
"Currently, discussions are under way within the process and there is a possibility to complete it [the process] by the end of the year," the same source said.
A working group from the representatives of SOFAZ, SOCAR (State Oil Company of Azerbaijan) and British BP, which is operator of the project, has been established to determine the procedures to legalize state property right to the assets of the ACG project, on which "zero balance" has been achieved.
"Discussions are continuing," said the Fund.
A "zero balance" has already begun within the ACG project, when all companies fully returned capital investments, which means an automatic transfer of ownership of all assets to the state.
SOFAZ head Shahmar Movsumov said earlier that it needs to legalize this procedure to move assets to state ownership.
"But it also means that they [the companies participating in the project] will continue using these assets till the term of the contract completes," he said.
Participants of the project to develop Azeri-Chirag-Guneshli are: BP (operator - 35.83 percent), Chevron (11.27 percent), Inpex (10.96 percent), AzACG (11.6 percent), Statoil (8.56 percent), Exxon (8 percent), TPAO (6.75 percent), Itocu (4.3 percent) and Hess (2.72 percent).
A total of 40.6 million tons of oil were produced from ACG in 2010. Daily production of oil from this block of fields in 2010 amounted to 823,100 barrels.
PSA contract for this project was signed in 1994 for 25 years with the right of extending for another five years.