Azerbaijani MPs ratified extension of Contract of Century until 2050


The Azerbaijani parliamentarians have ratified today the Contract for extension of the development of oilfield block Azeri-Chirag-Gunashli until 2050.

In the course of discussions at the Milli Majlis plenary session vice speaker Valeh Aleskerov has stated that in the period of the first Contract, whose realization demanded investments for $43.5 bn, the main capital investments amounted to $35 billion. Azerbaijan received $130 bn of profit oil for the contract period.

"The partners on the first contract took a decision on its extension until 2050, due to the fact that if to start development of the block in 2019, then the first oil will be produced only in 2023, and in 2024 the term of the existing contract will expire," Alasgarov said.

He added that the new Contract of the Century on development of oilfield block Azeri-Chirag-Gunashli was signed in Baku on 14 September and will last until 2050. Under the new contract, the equity share of project operator BP will be 30.37%, the stake of the State Oil Company (SOCAR) - 25%, Chevron 9.57%, ExxonMobil 6.79%, ONGC 2.31%, InpexCorp. (Japan) 9.31% and ITOCHUOil (Japan) 3.65%, Statoil 7.27%, and TPAO 5.73%.

"For the period of the contract it is planned production of 500 million tons of oil, while investments are estimated to be at $40 bn," Aleskerov said.

The first Contract of the Century for development of oil fields Azeri, Chirag and deepwater Gunashli was signed on 20 September 1994.