SOFAZ announces revenues from ACG, Shah Deniz fields

The State Oil Fund of Azerbaijan (SOFAZ) has revealed revenues from exploiting the Azeri-Chirag-Guneshli (ACG) and Shah Deniz fields in the Azerbaijani sector of the Caspian Sea, Report informs, citing the fund.

In January-July 2021, the fund received just over $2.903 billion from the ACG field.

Since the start of ACG development in 2001, the total revenue from the field has amounted to $152,308,000,000.

During January-July 2021, proceeds from the sale of gas and condensate from the Shah Deniz field amounted to $70.978 million. The earnings from the sale of condensate amounted to $57.131 million.

Since 2007, the total revenue from the sale of Shah Deniz gas and condensate has amounted to $3.738 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 project participants are BP (operator - 28.8%), AzSD (10%), SGC Upstream (6.7%), Petronas (15.5%), LUKoil (10%), NIKO (10%) and TPAO (19%).