SOCAR, AIOC Team-up to Develop ACG oil field

SOCAR (the State Oil Company of the Republic of Azerbaijan) and AIOC (the Azerbaijan International Operating Company) today signed a letter of intent (LoI) for the future development of the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.

The agreement will cover the development of the field until 2050 and will add significant resource development potential to the middle of the century. Today ACG produces circa 620,000 barrels of oil equivalent.

The shareholders in AIOC are BP, Chevron (CVX), INPEX, Statoil (STO), ExxonMobil, TPAO, ITOCHU (ITOCY) and ONGC Videsh.

The LoI was signed in Baku today by Rovnag Abdullayev, President of SOCAR, on behalf of the Republic of Azerbaijan, and by Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey, on behalf of the AIOC partnership.

The LoI agrees the key commercial terms for the future development of the ACG field and enables the parties to conclude negotiations and finalise fully-termed agreements in the next few months.