The State Oil Company of the Republic of Azerbaijan (SOCAR) has acquired Japanese corporation ITOCHU's stake in the development of the Azeri-Chirag-Gunashli (ACG) field block. The deal is aimed at consolidating Azerbaijan's participation in the country's largest oil and gas project.
Prior to the signing of the documents, ITOCHU Corporation held a 3.65% stake in the project. As a result of acquiring this asset, SOCAR's total share in ACG increased from 31.65% to 35.3%.
New Stage of Development and Positions of the Parties
SOCAR President Rovshan Najaf emphasized that the ACG project continues to make an important contribution to regional energy security.
"The start of production of the first non-associated natural gas from the ACG field block this year opens up new opportunities for the further development of the project and the growth of Azerbaijan's gas potential," he stated, expressing gratitude to the Japanese partners for their long-standing cooperation.
ITOCHU Chief Operating Officer Tetsuya Yamada noted that the company became the first Japanese investor in Azerbaijan in 1996. According to him, the asset transfer reflects a change in the corporation's strategic priorities, but does not signal its exit from the Azerbaijani market. ITOCHU plans to strengthen its partnership with SOCAR and pursue new business opportunities.
Background on the Project
The development of the deepwater Azeri and Chirag fields, as well as the deepwater section of the Gunashli field, is carried out under a production sharing agreement signed on September 20, 1994. BP Exploration (Caspian Sea) Limited acts as operator on behalf of the project participants.
Oil produced at the block is transported to global markets via the Baku-Tbilisi-Ceyhan (BTC) pipeline and the Western Route Export Pipeline.
Source: ru.apa.az