BAKU, Azerbaijan, March 18
By Fidan Babayeva - Trend:
Japanese INPEX Corporation oil company and the participants in the development project of the Azeri-Chirag-Guneshli (ACG) oilfield in Azerbaijan made an investment decision on the further development of the field in April 2019, the source in the INPEX Corporation told Trend.
"The development of ACG oilfields will be carried out through commissioning and deployment of a new production platform," the source said.
According to the source, this platform on the block of ACG deposits in the Azerbaijani sector of the Caspian Sea will begin its production activity in 2023.
“The cost of this project will be $6 billion. The project includes the creation of a new offshore platform and the installation of equipment designed to process up to 100,000 barrels of oil per day. According to the plan, the projects will produce up to 300 million barrels of oil during its entire duration,” the source noted.
The average annual rate of oil production in 2019 by INPEX on ACG amounted to 535,000 barrels per day, the source emphasized.
INPEX will continue to actively engage in exploration, development and production of hydrocarbon resources in Azerbaijan, the source noted.
“In the future, INPEX will continue to support the production and increase of proven reserves in the ACG oil fields. The project corresponds to the company's desire for sustainable growth in the exploration and production of oil and natural gas, which is one of the medium-term and long-term growth goals outlined in the strategy of VISION-2040,” the source added.
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.
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