US undersecretary for energy: Contract of the Century bolstered global energy security immeasurably

Fri 22 Nov 2019 07:57 GMT | 11:57 Local Time

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The Contract of the Century has bolstered global energy security immeasurably, said Mark W. Menezes, Under Secretary of Energy, United States Department of Energy, Trend reports.

He made the remarks during the “Contract of the Century: Building on 25 Years of Success” forum held on November 21 in Washington.

The event was organized by the Caspian Policy Center and the U.S. Chamber of Commerce.

He pointed out that through 27 years of bilateral relations, Azerbaijan has become an important partner for the US. “We look forward to further strengthening the relationship between our countries.”

The Contract of the Century was the first major investment by western multinational companies in the country of the former USSR, noted Menezes.

“It played a crucial role in transforming the country into a major global energy supplier. The extraordinary success of that development and that strength of relationship between Azerbaijan and its international partners was demonstrated when two years ago the contract was extended until 2049. This contract extension will also ensure the economic benefits of the Azeri-Chirag-Gunashli (ACG) fields to be maximized for the next 30 years. Today we not only celebrate the 25th anniversary of signing of the contract, but also 25 years of successful cooperation between Azerbaijan and the international community,” said US undersecretary for Energy.

He went on to add that this Contract of the Century has bolstered the global energy security immeasurably, paving the way for construction of multiple international oil and gas pipelines.

“We continue to share Azerbaijan’s goal of establishing transportation corridor for oil and gas that is vital to diversifying energy routes and resources for global markets,” added Menezes.

The Azeri-Chirag-Gunashli (ACG) partnership this year celebrates the 25th anniversary of the ACG production sharing agreement, signed on 20 September 1994 between the Government of Azerbaijan and eleven international companies representing eight countries.

This contract, which later became known as the “Contract of the Century”, was extended in September 2017 until the end of 2049.

The ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.

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