ACG contract improves Azerbaijan’s reputation on global energy market, analysts say

Oil&Gas Materials 14 September 2017 17:54 (UTC +04:00)

Baku, Azerbaijan, Sept. 14

By Ali Mustafayev – Trend:

The conclusion of the amended and restated agreement on the joint development and production sharing for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field in the Azerbaijan Sector of the Caspian Sea has proved to be of significance, according to international experts and analysts.

“It is a very significant event for Azerbaijan and the companies involved in the deal, as well as for the region. It specifically enhances the already strong reputation of Azerbaijan for contract integrity," Non Executive Director for Global Energy Development Zac Phillips told Trend.

"I believe that the fact that Azerbaijan signed such a long term commitment is a very positive sign, which definitely will attract global observers’ attention,” Phillips said.

He added that the agreement clearly means that Azerbaijan is open for businesses and international investment.

Meanwhile, independent Global Affairs analyst Sohail Mahmood stressed the importance of the agreement, noting that it will have its positive influence on the diversified internal and foreign policy.

“It is a very significant development in the region as Azerbaijan extends its collaboration with giant companies. It odds well for the country’s development and foreign relations. It will have a positive effect for the country and the region as a whole,” Mahmood told Trend.

The Azerbaijan Government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh signed the Amended and Restated Agreement on the Joint Development and Production Sharing for the Azeri and Chirag fields and the Deep Water Portion of the Gunashli field in the Azerbaijani sector of the Caspian Sea.

The contract was signed in Baku in the presence of President Ilham Aliyev of the Republic of Azerbaijan and a group of visiting senior government and state officials, by Rovnag Abdullayev, President of SOCAR, on behalf of the Azerbaijan Government, and by the representatives of the co-venturer companies.

The ACG is expected to attract more than $40bn capital investments in oil field of Azerbaijan during the next 32 years.