SOCAR reveals operating expenses volume under new ACG agreement
Baku, Azerbaijan, Sept. 22
By Maksim Tsurkov – Trend:
Operating expenses as part of the new agreement on development of the Azeri-Chirag-Gunashli block of oil and gas fields in the Azerbaijani sector of the Caspian Sea are forecasted to total $14.4 billion, says an article by Elshad Nasirov, SOCAR vice-president for investments and marketing, published in a special issue of the Iki Sahil newspaper.
According to Nasirov, the balance reserves of the ACG block are estimated at 16 billion barrels (2.2 billion tons) of oil.
The article says that 3,218 billion barrels or 435 million tons of oil were produced from the ACG project from 1997 to the end of August 2017. During the future long-term operational period of the block, it is planned to additionally produce 4.7 billion barrels or 635 million tons of oil, according to the article.
Nasirov noted that until the end of the agreement, investments will total $42.7 billion, and operating expenses – $14.4 billion, according to current forecasts.
A contract for developing the ACG field was signed in 1994. Shareholders of the project are BP (operator, 35.78 percent), Chevron (11.27 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 Videsh Limited (2.72 percent).
The signing ceremony of a new contract on development of ACG block of oil and gas fields was held in Baku Sept. 14.
Following the ratification of the contract, the new ACG participating interests will be as follows: BP - 30.37 percent; AzACG (SOCAR) - 25.00 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; and ONGC Videsh Limited (OVL) - 2.31 percent.
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