SOFAZ gets first bonus payment from ACG Agreement

Baku. 30 January. REPORT.AZ/ The State Oil Fund of Republic of Azerbaijan (SOFAZ) received the first bonus payment in amount of $ 450 million from the new agreement signed among the State Oil Company of the Republic of Azerbaijan (SOCAR) and foreign extractive industry companies on the “Joint development and production sharing for the Azeri and Chirag fields and the deep water portion of the Gunashli field in the Azerbaijan sector of the Caspian Sea” on January 29, 2018.

Report was told in the Oil Fund of Azerbaijan.

According to contract, foreign investors will pay overall a bonus of $ 3.6 billion to SOFAZ over the next 8 years.

Notably, agreement on joint development of ACG fields blocks and production sharing (PSA) was signed on September 20, 1994.

Amended and restated agreement was signed on September 14, 2017, on joint development of the ACG block and production sharing. The agreement was ratified by Azerbaijani parliament on October 31.

The participants of Azeri-Chirag-Gunashli project are: BP (30,37%- operator), AzACG SOCAR (25%), Chevron (9,57%), Inpex (9,31%), Statoil (7,27%), ExxonMobil (6,79%), TPAO (5,73%), Itochu (3,65%), ONGC Videsh Ltd. (2.31%).