Azeri-Chirag-Deepwater Gunashli - 20 years

This year on 20 September Azerbaijan and BP together with its co-venturers celebrated 20th anniversary of the “Contract of the Century”.

20 years is a period long enough to summarize the achievements of our successful partnership. 
The Production Sharing Agreement signed in September 20, 1994 in Baku by the Government of Azerbaijan and a consortium of 11 foreign oil companies from six nations for the development of an area that covered three major oil fields in the Azerbaijan sector of the Caspian Sea – Azeri, Chirag and Deepwater portion of the Gunashli field (ACG) has embarked on a new oil strategy, the implementation of which has created a rapid period of development and the transformation of the country into a major global energy supplier changing  the  energy map of Europe.

ACG is Azerbaijan’s first offshore PSA. With a lifetime of 30 years, it represents the first major investment by Western multinational companies in any country of the former Soviet Union and has become known as THE CONTRACT OF THE CENTURY.
To date the field has been developed in several phases: Chirag has been producing since 1997 as part of the Early Oil Project. This was followed by Azeri Project Phase 1 - Central Azeri where production started in early 2005. Successive Phase 2 included West Azeri, which started production in December 2005, and East Azeri, which started production in late 2006. The next ACG development phase - Phase 3 Deepwater Gunashli started up in April 2008. 

The last project to date was Chirag Oil Project, which was sanctioned in 2010 The West Chirag platform has been installed between the existing Chirag and Deepwater Gunashli platforms. First oil from the platform was achieved on 28 January 2014, and this completed the Chirag oil project. 

Up to mid-2014 the giant Azeri-Chirag-Gunashli oil field  produced  2,5 billion barrels. ACG investment by the end of the first half of 2014 was over $29 billion.  
Discovered in the early 1970s when Azerbaijan was part of the Soviet Union, the Azeri-Chirag-Gunashli field is the largest oilfield in the Azerbaijan sector of the Caspian basin.. Lying beneath 120 metres of water about 120 km east of Baku, it comprises a series of individual “reservoir horizons” located 2,000–3,500 metres beneath the Caspian seabed.

 It is operated by BP on behalf of the Azerbaijan International Operating Company (AIOC). AIOC formed in February 1995 following the ratification of the PSA originally comprised eleven partner companies( BP, Amoco, Unocal, LUKoil, Statoil, Exxon, TPAO, Pennzoil, McDermott, Ramco, Delta Nimir) representing six countries: UK, USA, Russia, Norway, Turkey and Saudi Arabia.  BP is the largest single shareholder.

ACG  current  shareholders and  participating interests  are indicated  below.

ACG is a complex of 6 production platforms: Chirag 1, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag and 2 process, gas compression, water injection and utilities (PCWU) platforms equipped with latest technologies. A sophisticated web of subsea pipelines was laid at the bottom of the Caspian Sea to transport oil from offshore to Sangachal Terminal one of the biggest and most efficient terminals in the world, which can receive and process up to 1.2 million barrels of oil per day.











Note: The above percentages  are indicated in rounded off numbers. The exact persentages are as follows: BP (35.7828%), SOCAR (11.6461%), Chevron (11.2729%),  INPEX (10.9644%), Statoi (8.5633%), ExxonMobil (8.0006%), TPAO (6.7500%), ITOCHU (4.2986 %), ONGC (2.7213%)