- BP and Azerbaijan's government sign a contract extending a production sharing deal for the country’s giant Azeri-Chirag-Guneshli oilfields until 2050; the existing deal had been due to expire in 2024.
- The deal between the BP-led consortium and Azeri state energy company SOCAR will include a one-time $3.6B payment to the government to continue developing the giant ACG offshore fields, the largest in the Azerbaijan sector of the Caspian basin.
- SOCAR increases its share under the new contract to 25% from 11.65%, while BP (LON:BP)'s share declines to 30.37% from 35.8% but will remain the operator; shares of other companies in the consortium also will be reduced, including Chevron (NYSE:CVX), Statoil (NYSE:STO) and Exxon Mobil (NYSE:XOM) to a respective 9.57%, 7.27% and 6.79%.
- Oil production at ACG totaled 14M metric tons in H1 2017, or 585K bbl/day, down from 16M metric tons a year earlier.
- Now read: Chevron - Booming At The Wrong Time
Original article