Azerbaijan receives $450 million bonus

The State Oil Fund of Azerbaijan (SOFAZ) has received $450 million as the first part of a $3.6 billion bonus from the consortium of oil companies developing the Azeri-Chirag-Deepwater Gunashli (ACG) field.

Under the terms of the contract signed in September 2017, SOFAZ will receive a $450 million bonus every year from 2018 to 2025, totaling $3.6 billion. The first tranche was received by SOFAZ on 29 January, 2018. The oil fund has not announced how the bonus will be spent.

The original contract for the development of the Azeri-Chirag-Deepwater Gunashli field was signed on 20 September, 1994, and oil production began in November 1997. That agreement was due to expire in 2024, but on 14 September, 2017, a new contract was signed extending the development of the fields until 2050.

Under the new contract, shares are distributed as follows:

British Petroleum (BP)  30.37%
SOCAR  25.00%
Chevron   9.57%
INPEX Corp.   9.31%
Statoil   7.27%
ExxonMobil   6.79%
TPAO   5.73%
ITOCHU   3.65%
ONGC India   2.31%

 

Under the new agreement, an estimated $43 billion will be invested in the development of the Azeri-Chirag-Deepwater Gunashli oil field by 2050.

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