Azerbaijan Approves $6 bln Chirag Project

SOCAR, the Azerbaijan State Oil Company and BP-Azerbaijan have approved the start of construction work on the 6 billion dollar Сhirag Oil Project. SOCAR President Rovnag Abdullayev and BP-Azerbaijan President Rashid Dzhavanshir signed the relevant documents today.

“We plan to produce 360 million barrels of oil under this project”, Abdullayev said during the signing ceremony. He said the project would require 6 billion dollars in investment, of which 4 billion would be allocated to build facilities and on pre-drill programs while the other 2 billion will be spent on drilling during production.

“Today the volume of foreign investment in Azerbaijan’s oil and gas sector has exceeded 38 billion dollars and of this, over 20 billion dollars has been spent on developing the Azeri-Chirag-Gunashli field”, Abdullayev said.

He noted that the Chirag project was important because it will make it possible to prolong stable production at the block on a maximum level. Abdullayev also pointed out that the project will create 1,800 new jobs.

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