WEEKLY ECONOMIC REVIEW
Azerbaijan marked the Day of Oilmen and the 11th anniversary of the signing of the вЂ�Contract of CenturyвЂ™ concluded for the development of the Azeri-Chirag-Gunashli fields. The Day of Oilmen was set in 2004 at the decree by Azerbaijani President Heydar Aliyev. The вЂ�Contract of CenturyвЂ™ signed on 20 September 1994, put an end to active assimilation of oil and gas resources in the Azerbaijani section of the Caspian Sea.
The participants in the agreement, which founded the Azerbaijan International Operating Company (РђIOC), were US companies Amoco, McDermott, Unocal, Pennzoil, Exxon, British companies BP and Ramco, the Norwegian Statoil, the Russian LUKoil, the Turkish TPAO and Delta Oil of Saudi Arabia. Further the list of participant-companies underwent changes, the shares were re-distributed and re-purchased in the contract. McDermott left the contract, while the Japanese Itochu entered the AIOC, two oil giants - BP and Amoco merged. The U.S. Mobile entered the AIOC through uniting with Exxon, a participant in the contract, Besides, Devon Energy (former Pennzoil) appeared in the list of shareholders, the British Ramco left it in 2000, trough purchase of its share (2,0825%) to the Saudi-American alliance Delta Hess at $150m. Later the Russian LUKOIL also sold its 10% stake to Inpex of Japan.
Over the past 10 years 4 Presidents have managed the AIOC: Terry Davis, John Prichard, John Legat, and the current David Woodward.
Under the first stage called вЂ�Early Oil Production ProjectвЂ™, Chirg-1 platform was built in Chirag field, which still produces oil. Besides, the Sangachal terminal was built in line with the world standards and put into exploitation. The Italian Saipem built subsea pipelines: 24-inch oil pipeline up to Sangachal terminal and 12-inch gas pipeline up to gas compression station in Oil Rocks. In 2005 the AIOC started the oil production fro the Central Azeri field.
On 25 May 2005 the first oil ran via the Baku-Tbilisi-Ceyhan (BTC). The BTC with an annual discharge capacity of 50 million tons will be mainly used for the transportation of oil produced from the ACG contract area. In the first stage the capacity of the pipeline will be used only in the volume of oil to be extracted from the Central Azeri and Chirag platforms.
Thus, Azerbaijan has achieved tremendous successes within the past 11 years in the sphere of oil production and oil delivery. Now the country is waiting for big oil revenues. The people of Azerbaijan has optimistic mood, willing to taste the oil revenues. Besides, the forecasts by oilmen boost hopes. By 2009 oil production in ACG will increase to 1 million barrels of oil a day at the expense of development of the Deepwater Gunashli field.