SOCAR increases its share in ACG project to 35.3%

Azerbaijan's state oil company SOCAR has acquired the stake of Japanese corporation ITOCHU in the development project of the Azeri-Chirag-Gunashli (ACG) oil field block. This was reported by SOCAR.

"The relevant documents on the acquisition of the participation share have been signed. The transaction was carried out in accordance with the requirements of the legislation, SOCAR's internal regulatory procedures, as well as the obligations stipulated by the agreement," the company said in a statement.

Prior to the transaction, ITOCHU Corporation held a 3.65% participating interest in ACG. As a result, SOCAR's share in the project increased from 31.65% to 35.3%.

SOCAR President Rovshan Najaf noted that the ACG project has been making an important contribution to the energy security of the country and the region for many years.

"At the same time, the start of production of first free natural gas at the ACG block this year opens up new opportunities for further development of the project and increasing Azerbaijan's gas potential. We express our gratitude to ITOCHU Corporation for its long-standing role in the project and effective partnership. We are confident that the project will continue to develop successfully thanks to the joint efforts of partners, high operational standards and mutual trust," he said.

Tetsuya Yamada, Chief Operating Officer of ITOCHU Corporation and Executive Director of the Energy & Chemicals Division, in turn, said that after ITOCHU became the first Japanese company to invest in Azerbaijan in 1996, the company has been building a strong partnership with SOCAR for nearly three decades within the ACG project and other investments in the energy sector.

"ACG is an exceptionally successful project, and our decision to transfer this asset to SOCAR reflects both ITOCHU's changing strategic priorities and the desire to further deepen the partnership with SOCAR. This deal does not mean ITOCHU's exit from Azerbaijan, but rather marks the beginning of a new stage in our cooperation. Azerbaijan will remain an important market for ITOCHU's investment and trading activities. We look forward to further strengthening cooperation with SOCAR and jointly implementing new business opportunities both in Azerbaijan and on international markets," he added.

It should be noted that the operator of the project is BP Exploration (Caspian Sea) Limited on behalf of the participants of the ACG Production Sharing Agreement.