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PM: Extension of ACG Deal a Historic Event

Extension of the contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields until 2050 is a historic event, said Georgian Prime Minister Giorgi Kvirikashvili in a message read out by Energy Minister Ilia Eloshvili at a ceremony to sign a new ACG contract in Baku Sept. 14.

The Georgian prime minister in his message noted the importance of this agreement and added that such energy projects make it possible to reduce poverty and improve well-being of citizens.

The new agreement will foster further development of relations between Azerbaijan and Georgia, said the Georgian PM’s message.

A ceremony to sign a new contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields was held in Baku Sept. 14.

According to the new contract, the share of Azerbaijan’s profitable oil will be 75 percent, and bonus payments by foreign investors will reach $3.6 billion.

The initial ACG contract was signed in 1994. Proven oil reserves of the ACG block near 1 billion tons.