Azerbaijani Oil Fund announces revenue from two major offshore deposits

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The State Oil Fund of Azerbaijan (SOFAZ) has announced revenue from the Azeri-Chirag-Guneshli (ACG) and Shah Deniz offshore fields in the Azerbaijani sector of the Caspian Sea. In January-September 2021, the ACG field generated $3,966,800,000 in revenue, the Fund told Report.

Since the ACG field was put into operation in 2001, the total revenue from the field has amounted to $153,372,000,000. Revenues from the sale of gas and condensate from the Shah Deniz field in January-September 2021 made up $329,131,000.

The total revenue from the sale of gas and condensate from the Shah Deniz field since it was commissioned in 2007 has amounted to $3,996,000,000.

ACG is the largest oil deposit in Azerbaijan. The first production sharing agreement for the development of the block of fields was signed on September 20, 1994. On September 14, 2017, a new agreement was signed on the joint exploitation of these fields and production sharing. The agreement provides for the development of the deposits by the end of 2049.

In ACG shareholders are BP (30.37%), SOCAR (25%), MOL Group (9.57% replaced Chevron as of April 16, 2020) INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh Limited (OVL) (2.31%).

The agreement on exploration, development, and production sharing of the Shah Deniz field was signed on June 4, 1996. The Shah Deniz Production Sharing Agreement (PSA) was ratified on October 17, 1996. The field, located 70 km southeast of Baku, was discovered in 1999.

The project includes BP (operator – 28.8%), AzSD (10%), SGC Upstream (6.7%), LUKoil (25.5%), NICO (10%) and TPAO (19%).