Baku, Azerbaijan, May 6
By Azad Hasanli - Trend:
Since 1995, foreign contractors have so far invested over $80 billion in Azerbaijan’s oil and gas sector, Rovnag Abdullayev, president of Azerbaijan’s state oil company SOCAR, said in an article published in "Azerbaijan" newspaper, Trend reports.
He said that SOCAR signed 19 PSA (production sharing agreement) contracts with 24 companies from 15 countries and two risk service agreements.
He stressed that Azerbaijan’s energy security is fully ensured. At the same time, Azerbaijan has become an integral part of the system for ensuring energy security of neighboring countries, in particular, Georgia and Turkey, he said.
“The South Caucasus pipeline was built for the transportation of gas as part of the first phase of Shah Deniz field project, and it was expanded as part of the second phase,” he added. “So far, about 40 billion cubic meters of gas have been supplied via this pipeline, both domestically and to Georgia and Turkey.”
The contract for the development of the Azeri-Chirag-Guneshli (ACG) block of fields and the contract for the development of the Shah Deniz offshore field are the biggest oil and gas contracts in Azerbaijan.
The contract for developing the ACG field was signed in 1994. A ceremony to sign a new contract on development of the ACG block of oil and gas fields was held in Baku Sept. 14, 2017.
The new ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 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; ONGC Videsh Limited (OVL) - 2.31 percent.
The contract for the development of the Shah Deniz offshore field was signed on June 4, 1996.
The proved reserves of the field reach 1.2 trillion cubic meters of gas and 240 million tons of condensate.
Share distribution among the parties to the agreement: BP (operator) -28.8 percent, AzSD - 10 percent, SGC Upstream - 6.7 percent, Petronas - 15.5 percent, Lukoil - 10 percent, NICO - 10 percent and TPAO -19 percent.
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