Each year on September 20, Azerbaijan marks the Day of Oilmen – professional holiday of workers of oil and gas sector.
Report informs, on August 16, 2001 nationwide leader of the Azerbaijani people Heydar Aliyev had signed a decree under which September 20 is marked as the Day of Oilmen in Azerbaijan.
On this day, successes achieved in this field of the industry and challenges ahead are discussed, workers and professionals distinguishing by special services and heroism are awarded honorary titles, orders and medals under decrees and orders of head of state.
The celebration of this day as a professional holiday of this sector’s employees is timed to the signing of the contract on joint development and production sharing for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli field (ACG) in the Azerbaijani sector of the Caspian Sea, signed in Baku on September 20, 1994.
According to historical, political and international significance of the agreement it was called the Contract of the Century and reflected on 400 pages and in 4 languages.
The ACG field has a complex consisting of six production platforms – “Chirag”, “Central Azeri”, “Western Azeri”, “Eastern Azeri”, “Deepwater Gunashli”, “Western Chirag” and two technological processing, compression, irrigation and technological supply platform provided with most modern technologies.
Development of ACG field was carried out in several stages. Oil production in the “Chirag” platform started in 1997, “Central Azeri” at the beginning of 2005, “Western Azeri” in December 2005, “Eastern Azeri” in late 2006. Production from “Deepwater Gunashli” (Phase-3), the next stage of development of ACG, began in April 2008.
The last stage is the project “Chirag oil”, launching of which is authorized in 2010. “Western Chirag” platform was constructed between the platforms “Chirag” and “Deepwater Gunashli”, and production started here on January 28, 2014.
Oil produced in the ACG under the contract is exported to the world market via Baku-Tbilisi-Ceyhan and Baku-Supsa pipelines.
Participants in the ACG are the companies BP (35,8% as operator), SOCAR (11,6%), Chevron (11,3%), Inpex (11%), Statoil (8,6%), ExxonMobil (8%), TPAO (6,8%), Itochu (4,3%), ONGC Videsh Ltd. (OVL, 2.7%).
This year was remarkable with one more event for the Azerbaijani oil industry. Thus, amended and restated agreement was signed on September 14 on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli field (ACG) until 2050.
The new contract was signed in the presence of President of the Republic of Azerbaijan Ilham Aliyev and a group of visiting senior government and state officials, by Rovnag Abdullayev, President of SOCAR, on behalf of the Azerbaijan Government, and by the representatives of the partner companies – SOCAR, BP, Chevron, Inpex, Statoil, ExxonMobil, TP, Itochu and ONGC Videsh companies.
The new contract is now subject to ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan. Following ratification of the contract, the new ACG participating interests will be as follows: BP, 30.37 per cent; AzACG (SOCAR), 25.00 per cent; Chevron, 9.57 per cent; INPEX, 9.31 per cent; Statoil, 7.27 per cent; ExxonMobil, 6.79 per cent; TP, 5.73 per cent; Itochu, 3.65 per cent; and ONGC Videsh Limited (OVL), 2.31 per cent.
During the speech at the signing ceremony, President of Azerbaijan Ilham Aliyev emphasized that the new contract is of great importance for Azerbaijan.
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