“On September 14, 2017 a new contract for extension of Production Sharing Agreement (PSA) on development of Azeri-Chirag-Guneshli block of oil and gas fields was signed with the participation of Azerbaijani president Ilham Aliyev. This contract proves Azerbaijan’s economic power”, SOCAR President Rovnag Abdullayev sai at the Argus Azerbaijan International Petroleum Summit 2017.
According to him, the ACG currently has more than 550 million tons of oil reserves. “We are sure that this is not the final figure,” he added.
“Azerbaijan is today on the focus of world community for its oil and gas reserves. The Southern Gas Corridor project, which is being implemented by us is the biggest energy and infrastructure project of the Europe. Shah Deniz Stage 2 gas will make a 3,500 kilometer journey from the Caspian Sea into Europe. The SGC project will contribute to the expansion of the network of the energy sources and energy security of the several Central and Southern European countries,” SOCAR President said.
“Abdullayev said that annual natural gas production in Shahdeniz field reaches 9 billion cubic meters. In the second stage, the production will reach 16 billion cubic meters. Of this, 6 bcm will be transported to Turkey, 10 bcm to Europe. The works on the project are currently being carried out in accordance with the schedule,” he added.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey. At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
Then speaking at the summit, BP Regional President for Azerbaijan, Georgia and Turkey Gary Jones talked about the importance of the new contract for extension of Production Sharing Agreement (PSA) on development of Azeri-Chirag-Guneshli block of oil and gas fields. In his report he paid special attention to the growth of investment opportunities in Azerbaijan.
He further said that the government of Azerbaijan for the past decade has made an enormous effort to grow the overall transportation and infrastructure in the country.
The summit participants considered development features of logistics routes for export of oil and oil products, petrochemical products, changes in the situation in the markets of the Caspian countries, discussed issues of expansion and modernization of transport infrastructure as well as specifics of the development of gas projects.