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New ACG contract to become Contract of 21st Century – Turkish minister

Oil&Gas Materials 14 September 2017 10:34 (UTC +04:00)
The new contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea will become a Contract of the 21st Century, Turkish Minister of Energy and Natural Resources said.
New ACG contract to become Contract of 21st Century – Turkish minister

Baku, Azerbaijan, Sept. 14

By Azad Hasanli, Rufiz Hafizoglu - Trend:

The new contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, which implies the extension of the activity at this field until 2050, will become a Contract of the 21st Century, Turkish Minister of Energy and Natural Resources Berat Albayrak said.

Albayrak made the remarks at the signing ceremony of the new ACG contract in Baku Sept. 14.

"Azerbaijan is the most reliable source of natural gas both for Turkey and for the whole world," Albayrak said.

He added that the Trans Anatolian Natural Gas Pipeline (TANAP) project, being implemented by Azerbaijan and Turkey, is of an important and strategic nature for Turkey and for entire Europe.

He added that energy cooperation between Azerbaijan and Turkey is an example for the whole world.

The signing ceremony of a new contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields was held in Baku Sept. 14.

According to the new contract, the share of Azerbaijan’s profitable oil will be 75 percent, and bonus payments by foreign investors will reach $3.6 billion. The contract for the development of the ACG field was signed in 1994. The proven oil reserves of the block near 1 billion tons.

The shareholders of the project are BP (operator, 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), Itocu (4.3 percent) and ONGC (2.72 percent).

TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction the gas will be delivered to Europe in early 2020.

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

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