Turkish ambassador: Tomorrow Baku signs extension of Contract of the Century until 2050

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    Minister of Energy and Natural Resources, Berat Albayrak will visit Azerbaijan on September 14.

    Report informs, Turkish ambassador to Azerbaijan Erkan Özoral told reporters .

    According to him, main purpose of the visit is to participate in the signing ceremony of the agreement, which envisages the extension of the Contract of the Century (the Production Sharing Agreement (PSA) agreement on development of Azeri-Chirag-Gunashli (ACG) field) until 2050.

    Notably, SOCAR and BP Operator AIOC (Azerbaijan International Operating Company) have signed in Baku a letter of intent on further development of the ACG blocks on December 23, 2016. The document reflects the principles of the agreement on the block development until 2050.

    ACG is a super-giant field located about 100 km east of Baku. It is the biggest producing oil field in the Caspian Sea and covers an area of more than 432 square kilometres. It lies in water depths of between 120 and 170 metres. The depth of the reservoir is 2,000-3,500 metres.

    The existing ACG PSA was signed on September 20, 1994 for 30 years. Oil production from the field began in November 1997.

    Participants in the project are the companies BP (35,8% – 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%).

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