Describing Turkish-Azeri energy cooperation as a model for the rest of the world, Erdogan's letter wished "the prolongation of the new contract to benefit our countries" and stressed that the project benefits "the development of the whole region, as well as to the strengthening of Azerbaijan's strategic role".
When Bakusigned the first "Contract of the Century" in 1994, Azerbaijan was entering the era of independence and hadn't yet proved itself as a reliable partner in the supply of hydrocarbons. Therefore, the "New Contract of the Century" was signed on new conditions. Under the terms of new contract, SOCAR takes another 11 percent stake in the development to 25 percent and the worldwide partners pay $3.6 billion to an Azeri state oil fund.
He also drew attention to the character of the agreement that symbolizes the limitless sources of Azerbaijan and noted that the ACG agreement has made a remarkable contribution to the safe delivery of the country's oil to the global energy market.
For over twenty years Azerbaijan has been proving its reliability as a supplier of hydrocarbons, a country with an absolutely transparent scheme for investing in the energy sector, a country, which declared open door policy and attracted huge volumes of foreign investments in large-scale development of the richest oil and gas deposits of the Caspian Sea.
"Twenty three years pass since that day". "Today Azerbaijan is recognized in the world as a country, which stands on its feet and has broad worldwide relations, and as an influential country". It is subject to ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan.
BP's partners in the oilfield include Statoil, Chevron, INPEX, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.
As part of the agreement, SOCAR and its co-venturers will advance the engineering development work to weigh an additional production platform in the ACG contract area.
First oil was produced from the Chirag field on 7 November 1997.
ACG has also delivered over 30 Bcm of associated gas to the government of Azerbaijan.
A contract for the largest oil complex offshore Azerbaijan could lead to billions of dollars in investments and billions more in oil barrels, analysis finds. In the first half of 2017, total production from ACG averaged 585,000 barrels per day. There are six production platforms in the ACG block at the moment, and two processing ones.
Production from ACG is now running at around 585,000 barrels per day of crude which is exported to global markets through the Baku-Tbilisi-Ceyhan oil line, down from a peak of 835,000 barrels per day in 2010.