30 years have passed since the signing of the “Contract of the Century” on the development of the Azeri-Cherag-Guneshi deposits block “(ACH)-the largest oil field of Azerbaijan.
The contract provided for the withdrawal of Azerbaijani oil to world markets and played a large role in the economic development of the country.
In the first years after gaining independence, Azerbaijan was faced with economic problems. With the advent of Heydar Aliyev, Azerbaijan began to use a strategy that provides for the effective use of natural resources and their transportation to world markets.
September 20, 1994, Azerbaijan concluded the first major international energy contract. 11 companies from seven countries signed a contract for the development of the Azeri-Cherag-Guneshi field and oil transportation to the world market.
After the contract, production platforms at oil fields were created about 100 kilometers from Baku.
On the coast of the Caspian Sea, a Sangachal terminal was built.
The total volume of oil, obtained from November 1997 to June 30, 2024 from the ACH deposits block, amounted to 4.4 billion barrels.
Azerbaijan began to cooperate with Turkey and Georgia for the transportation of oil with ACH, after which the Baku-Tbilisi-Jahan (BTD) pipeline was built.
The pipeline was commissioned in 2006. Until today, 4.3 billion barrels of oil have been pumped on it, and 5,707 tankers have been shipped from the Jaykhan terminal.
If in the early 1990s there was almost no oil production in Azerbaijan, today the country is selling raw oil and oil products for more than 30 countries.
A CONTRACTION OF ACH was signed on September 20, 1994 and entered into force on December 12 of the same year. Oil production on the block began in November 1997.
The contract expired in 2024. However, on September 14, 2017, a new contract was signed in Baku for the development of the ACH block until 2050.
In accordance with the new contract, the share of the British BP (project operator) is 30.37 percent, SOCAR – 25 percent, MOL – 9.57 percent, Inpex – 9.31 percent, Equinor – 7.27 percent, Exxonmobil – 6.79 percent, TP – 5.73 percent, ITOCHU – 3.65 percent, ONGC Videsh Limited – 2.31 percent.
oil revenues were used for the development of the country
President of Azerbaijan Ilham Aliyev characterized the signing of the “contract of the century” by a historical event.
“Oil in most cases brings the countries not happiness, but the tragedy, conflicts, inequality and injustice. However, for Azerbaijan, oil brought good things. Because we used oil revenues as investments for our development. The international situation of our country has strengthened. The basis of our modern cities, transforming villages and construction work in the country is our oil industry, ”said Aliyev.