"We had three options before signing of New Contract of the Century"
The Contract of the Century signed in 1994 is a contract between independent Azerbaijan and the western companies. This contract is of great importance for our country, SOCAR first Vice-President Khoshbakht Yusifzade said in a letter addressed to the participants of the SPE Annual Caspian Technical Conference and Exhibition.
‘Till October 1, 2017, 246 million tonnes of profit oil of Azerbaijan have been sold in the world markets. During this period, 342 million tonnes of 459 million tonnes of oil sent to world market were transported via Baku-Tbilisi-Ceyhan pipeline (BTC)’m he said.
He added that the contract of the century has fulfilled and is fulfilling its mission successfully: “It would expire in 2024. We had some options. The first option was continuation of cooperation with International Operation Company. The second was to find a new partner. And the third option was that we had to operate ACG. All options were analyzed and consequently, we chose the first option – continuation of cooperation with BP. Why? Because, BP has been involved in this issue since 1994 and knows every details about ACG. Consultations went on. BP was interested in cooperation too. Finally, the Contract of the Century was extended on September 14. The new contract is very useful for Azerbaijan. For example, distribution of profit hydrocarbon remained unchanged – 75% for Azerbaijan, 25% for co-venturers. Azerbaijan’s share in ACG doubled to 25%. The co-venturers will pay a bonus of $3.6 billion to Azerbaijan. Associated gas will belong to Azerbaijan. ACG will produce more 500 million tonnes of oil by 2050. $43 billion has been invested in ACG so far and same amount will be invested by 2050”.