Insight
BP and partners confirm Azerbaijan's new 'Contract of the Century'
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Report summary
BP, SOCAR and partners have finalised the PSC extension for Azerbaijan's Azeri Chirag Guneshli (ACG) oil megaproject. As announced in December 2016, the current 2024 expiry date will be extended to end-2049. The international partners will pay a US$3.6 billion bonus and SOCAR (Azerbaijan's NOC) will increase its stake from 11.6% to 25.0%. The agreement will take effect upon ratification by Azerbaijan's Parliament. We evaluate the announced terms and five key takeaways from this landmark event.
What's included
This report contains
Table of contents
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ACG contract extension – the key terms
- Our view
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ACG contract extension – five highlights
- 1) Securing Azerbaijan's upstream future, with BP as operator
- 2) BP's latest long-term move
- 3) Consortium committed to a high-value asset
- 4) ACG offers low-cost and long-life production
- 5) A milestone for upstream contract extensions
Tables and charts
This report includes 2 images and tables including:
Images
- ACG – new ownership structure
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