On 23 December, BP, SOCAR and partners signed a Letter of Intent to extend Azerbaijan's critical Azeri Chirag Guneshli (ACG) PSC. The current 2024 expiry date will be extended to 2050, with BP (35.8%) continuing to lead the consortium. PSC extension will be finalised in 2017. We recently highlighted ACG contract extension as the most prominent event to watch in Azerbaijan's energy industry. Commercial terms are now in place to unlock rare long-life volume and value. BP also operates Shah Deniz, Azerbaijan's other upstream megaproject, under a PSC that will expire in 2048. Finalisation of ACG extension will send the ultimate confirmation of the company's dominant role in Azerbaijan's upstream sector, alongside SOCAR, for many decades to come.