Valeh Alasgarov: New ACG agreement particularly envisages participation of local companies

Baku. 31 October. REPORT.AZ/ "Participation of local companies was specifically envisaged in the restated agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field in the Azerbaijani sector of the Caspian Sea in order to ensure the superiority of Azerbaijani companies. A relevant infrastructure is created in Azerbaijan with the funds from this project".

Report informs, Valeh Alasgarov, Deputy Chairman of Azerbaijani Parliament said at today's plenary session.

Responding to claims regarding ecological situation in the Caspian Sea, Vice speaker said that the work carried out in this project meets the highest environmental requirements: "No country has gained privileges from such projects that Azerbaijan did from this one. Azerbaijan's interests preserved at the highest level".

Alasgarov said that it is difficult now to say exact amount of capital expenditure on the project: "Depending on the work progress, it may be more or less than $ 33 billion as the work will be carried out in the undeveloped part of the field. Also, it will depend on oil price in the market. Therefore, no one can exactly forecast that".

Notably, Milli Majlis has today ratified the agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field in the Azerbaijani sector of the Caspian Sea signed on September 14 between the State Oil Company of Azerbaijan Republic (SOCAR) and “Azerbaijan (ACG) Limited”, BP, “Chevron”, “Inpex”, “Statoil”, “ExxonMobil”, TP, “Itochu” and “ONGC Videsh”.