Minister: ACG and Shah Deniz bring over $163B to Azerbaijan

So far, Azerbaijan has extracted 555 million tons of oil from the Azeri-Chirag-Guneshli block and the Shah Deniz gas condensate field, Azerbaijani Energy Minister Parviz Shahbazov said on the first day of the conference within the Baku Energy Forum.

According to him, 168 billion cubic meters of gas and 36 million tons of gas condensate have been extracted from these fields so far.

The minister also noted that these projects had brought Azerbaijan more than $163 billion.

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

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

The agreement on exploration, development, and shared production of the promising Shah Deniz areas was signed on June 4, 1996. The production sharing agreement was ratified on October 17, 1996.

The BHEX01 exploration well will be drilled within the West Prospective Area of the SWAP Contract Area, approximately 1.5km from the coast, in a water depth of approximately 7m. The well is planned to reach a total depth of up to 4400 metres.