PSA contractors invested $ 76 bln in oil-gas sector of Azerbaijan

Baku. 21 September. REPORT.AZ/ To the end of the first half of 2017, PSA contractors have invested roughly $ 75.7 bln in the oil-gas sector of Azerbaijan.

Report informs, Vagif Aliyev, Head of Investments Department of the State Oil Company of Azerbaijan Republic (SOCAR) stated in the article published by the Iki Sahil newspaper's special edition dedicated to the Day of Oilmen.

According to him, total investment made by participants of Azeri-Chirag-Gunashli (ACG) Field Development Project in the country's oil and gas sector by end of the second quarter 2017 amounted to about $ 42.8 bln.

V. Aliyev noted that total amount of investments by participants of "Shah Deniz" project in reporting period is about $ 25.9 bln: SOCAR and its subsidiary companies are parties to 17 PSA agreements signed with 23 companies representing 15 countries”.

Notably, Production Sharing Agreement (PSA) signed on September 20, 1994 in Baku by the Government of Azerbaijan and a consortium of 11 foreign oil companies. In February 1995, Azerbaijan International Operating Company (AIOC) was established. AIOC controls field block on behalf of BP.

Participants in the project are the companies BP (35,8% - operator), SOCAR (11,6%), Chevron (11,3%), Inpex (11%), Statoil (8,6%), ExxonMobil (8%), TPAO (6,8%), Itochu (4,3%), ONGC Videsh Ltd. (2.7%).

The agreement on 'Shah Deniz' perspective area exploration, development and production sharing was signed June 4, 1996. 'Shah Deniz' production sharing agreement was ratified on October 17, 1996. Participants to the agreement are: BP (operator - 28.8%), AzSD (10%), SGC Upstream (6.7%), Petronas (15,5%), LUKoil (10%), NICO (10%) and TPAO (19%).