Caspian consortium of oil fields feeding the BTC Pipeline ridden with environmental problems
| Location |
Azerbaijan
|
| Total Cost |
$3.2 billion
|
| Funding |
IFC and EBRD initial loan of $30.5 million each
|
| Status |
Active
|
Azeri-Chirag-Gunashli is a BP led consortium of oil fields in the Caspian Sea 120 kilometers from Azerbaijan. Total recoverable reserves are estimated at around 5 to 6 billion barrels of petroleum. The oil is transported through several different pipelines, including the Baku-Tbilisi-Ceyhan to the Mediterranean, the Western Route Export to Georgia, and the Northern Route Export to Russia.
The consortium is operated by BP 34.1% on behalf of SOCAR at10.3%, Lukoil at10%, Unocal at 10%, Statoil at 8.6%, Exxon Mobil at 8%, Turkish Petroleum at 6.8%, Devon at 5.6%, Itochu at 3.9% and Delta Hess at 2.7%. The production sharing agreement (PSA) was signed in September 1994, which is now publicly disclosed due to civil society work.
The Early Oil Project was the first phase of ACG, and was funded by both the IFC and EBRD in 1998, and is currently producing 130,000-140,000 barrels of oil per day. Phase I, confusingly, is the second in the series of ACG projects, which will be followed by Phase 2 and 3.
BIC supports its civil society partners in their work with Azerbaijan, and monitors the development of the project.