‘Extension of ACG contract brings us important dividends’, President Ilham Aliyev

Baku, January 11, AZERTAC

‘The extension of the Azeri-Chirag-Gunashli contract also brings us other important dividends’, President of Azerbaijan Ilham Aliyev stated at the meeting of the Cabinet of Ministers on January 10 dedicated to the results of socio-economic development of 2017 and objectives for the future.

The Head of State said that in 2017 historic events took place in the field of energy. ‘One of them was the extension until 2050 of the contract for the Azeri-Chirag-Gunashli field. This will allow us the opportunity to maintain our levels of production for many years – at least until 2050. This will make it possible for foreign investors to continue to invest heavily in the oil sector in Azerbaijan. We are talking about tens of billions of dollars. Of course, this investment will have a positive impact on all sectors of our economy. I mean the creation of new jobs and new local enterprises. Of course, maintaining oil production at a stable level will allow us the opportunity to plan our economic development and gradually reduce dependence on oil. In the last two years, we have largely achieved this.

The extension of the Azeri-Chirag-Gunashli contract also brings us other important dividends. First of all, SOCAR's share increases from 11 to 25 per cent. 75 per cent of the profit oil will remain with the Azerbaijani side. I can say that this is an excellent result for a young and independent country achieved with foreign investors in the oil sector. The State Oil Company of Azerbaijan (SOCAR), together with other partners, will participate in the project as the operator. For extending the contract, even though foreign investors will invest tens of billions of dollars, an additional bonus of 3.6 billion dollars will be paid in equal instalments over the course of eight years. The first tranche will be provided this year. This, briefly, is the significance of the "Azeri-Chirag-Gunashli" project’, the President of Azerbaijan emphasized.

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