BP signed a contract with the government of Azerbaijan today to extend a production sharing deal until 2050.
A group led by BP agreed with the State Oil Company of the Republic of Azerbaijan (Socar) to continue developing the huge Azeri Chirag fields and the deep water portion of the Gunashli field (ACG) in the Caspian Sea.
Under the amended contract, the government will receive a bonus of $3.6bn (£2.7bn) from the group of oil companies and Socar will increase its stake in the ACG fields to 25 per cent from 11.65 per cent. BP’s stake dropped to 30.37 per cent from 35.8 per cent, and it will remain the operator.
Other companies in the consortium have also reduced their ACG shares. Chevron now holds 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 2.31 per cent.
“The terms of the new contract reflect the growing financial and technological potential of Azerbaijan and Socar. They also demonstrate the confidence of our foreign partners in the Azerbaijani economy, taking our effective partnership to a new level,” said Rovnag Abdullayev, Socar’s president.
President of Azerbaijan Ilham Aliyev said the remaining oil reserves of the ACG oilfields stood at 500m tonnes.