Azeri-Chirag-Gunashli contract's 25th anniversary in facts

Azeri-Chirag-Gunashli contract's 25th anniversary in facts

Society
18 September 2019, 11:43 47
ACG is celebrating its 25th anniversary in 2019. This is a very important milestone for both the government and BP and ACG partners.
25 years ago, on September 20, 1994, the Government of Azerbaijan and a group of international oil companies representing eight countries signed the Azeri-Chirag-Gunashli Production Sharing Agreement, which later became known as the "Contract of the Century”. The Contract was extended in September 2017 until mid-century.
It is with this contract that the massive developments, turning Azerbaijan once again into one of the world’s major energy suppliers and transforming the country’s economy, started.
The 25th anniversary marks an important milestone in the new history of Azerbaijan’s oil and gas industry. It is also a historical date for SOCAR, BP and all other partners in the Azeri-Chirag-Gunashli contract.
SOME KEY ACG FACTS:
From the start of production in November 1997 till the end of 2Q 2019, ACG produced about 488 million tonnes (more than 3.6 billion barrels) of oil.
Around 3.3 billion barrels of ACG oil have been exported to world markets via the Baku-Tbilisi-Ceyhan pipeline.
Since 2006, 4,300 tankers loaded with ACG oil have been lifted from the Ceyhan terminal.
More than 44 billion cubic meters of associated gas were delivered to Azerbaijan since the start of production till the end of 2Q 2019.

Capital expenditure in the ACG project by the end of 2Q 2019 was $36 billion.
From the start of ACG project in 1994 till the end of 2Q 2019, BP and its co-venturers spent around $84 million on sustainable development projects in Azerbaijan.
On September 14, 2017, the ACG PSA was extended until end of 2049.
Following PSA extension, ACG’s $6-billion next development project – Azeri Central East (ACE) was sanctioned 19 April 2019 and is currently at the execute stage with first oil expected in 2023.
As part of the ACG project – one platform (Chirag 1) was renovated and seven new platforms were built, one of the largest oil and gas storage and processing terminals of the world was constructed, a sophisticated web of subsea pipelines was laid at the bottom of the Caspian Sea.
At the end of the 2Q of 2019, 124 oil wells were producing, while 44 wells were used for water and 7 for gas injection.
ACG has had excellent safety record and, as an environmentally sound project, it has conducted around 140 Environmental Impact Assessments and 266 offshore, onshore and near-shore monitoring surveys.