Japanese INPEX Corp. announces commencement date of new platform at ACG

Oil&Gas Materials 18 March 2020 13:22 (UTC +04:00)

BAKU, Azerbaijan, Mar. 18

By Fidan Babayeva - Trend:

The new platform at the Azeri-Chirag-Guneshli (ACG) oilfield in the Azerbaijani sector of the Caspian Sea will begin its production activity in 2023, the source in the Japanese INPEX Corporation oil company told Trend.

According to the source, INPEX and the project participants made a final investment decision on the further development of ACG oil fields by putting into operation and deployment of a new production platform.

“Previously, INPEX participated in the project through its subsidiary INPEX Campos, which it established in partnership with Sojitz Corporation (Sojitz) and the Japan National Oil, Gas and Metals Corporation (JOGMEC),” the source added.

The source also noted that the contract for the development of ACG deposits was signed in 1994. Oil production at the block began in November 1997. In September 2017, INPEX and its partners agreed with the Azerbaijani State Oil Company SOCAR to extend the validity of the Production Sharing Agreement (PSA) for ACG oil fields by 25 years until December 31, 2049 and the revised PSA came into force in January 2018.

On September 20, 1994, the Government of Azerbaijan and a group of international oil companies representing eight countries signed the Azeri-Chirag-Gunashli Production Sharing Agreement, which later became known as the “Contract of the Century”. The Contract was extended in September 2017 until mid-century.

ACG participating interests are: BP (30.37 percent), SOCAR (25 percent), Chevron (9.57 percent), INPEX (9.31 percent), Equinor (7.27 percent), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU (3.65 percent), ONGC Videsh Limited (OVL) (2.31 percent).

In November 2019, Hungarian MOL Group company signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline Ltd to acquire a 9.5-percent stake in the development project of the ACG block of oil and gas fields and an 8.9-percent stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline project.

The total value of the contract is $1.5 billion, taking into account adjustments at the closing of the transaction, which will be financed through the existing liquidity of the company. Upon completion of this transaction, MOL will become the third biggest partner in the ACG. The transaction is expected to be completed by the second quarter of 2020.