Azerbaijan is one of Statoil’s largest and longest-standing international commitments. We’ve been operating here since 1992 and are one of the largest foreign investors.

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0 BOE/D 2017 average production
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0 OFFICE LOCATed in BAKU
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0 Established our office in Azerbaijan

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A long-standing commitment

Since 1992 Statoil has been a partner in Azerbaijan’s industrial and economic transition. Together with the national oil company SOCAR and other international companies, we have worked both industrially and socially to build Azerbaijan’s burgeoning oil and gas market to realise its full potential.

Today Statoil has an interest in the Azeri-Chirag-Gunashli (ACG) oil field, as well as the Baku-Tbilisi-Ceyhan (BTC) pipeline—which runs from the Azerbaijan capital of Baku to the south Turkish port of Ceyhan on the Mediterranean.

Statoil and its international partners formed the Regional Sustainable Development programme which consists of the Community Investment Programme / Future Communities Programme and the Regional Development Initiative. Collectively these programmes ensure Statoil and its partners are responsible organisations that foster development and community empowerment near operations. In addition, Statoil, in partnership with the Norwegian government, has supported the Azerbaijani government to establish an oil fund based on the Norwegian model, as well as driven technical development of Azerbaijanis through collaborations with SOCAR and students. 

Operations in Azerbaijan

Infographics about Statoil in Azerbaijan

In September 2017, a 30-year Production Sharing Agreement (PSA) for Azeri Chirag and Deep Water Gunashli (ACG) oil field that was signed in September 1994 was extended for another 25 years, until the end of 2049. Statoil has a 7.26% interest in the extended ACG PSA. BP is the operator of ACG.

The ACG field is located 100 kilometers east of Baku in water depths ranging from 125-180 meters. The development is based on fixed platforms and subsea injection technology.  BP currently estimates total recoverable reserves in ACG over the period of extended PSA (2018-2049) at ca 3 billion barrels of oil.  ACG crude oil is sent to Sangachal Terminal, a hub with capacity of 1.2 million barrels, where oil is processed prior to export. 

Baku-Tbilisi-Ceyhan (BTC) oil export pipeline is the main export rout for the ACG oil. Statoil has an 8,71% interest in BTC project.  BTC pipeline passes Azerbaijan, Georgia and Turkey, connecting the Caspian with the Mediterranean Sea.  Pipeline length is 1768 km: 443 km in Azerbaijan, 249 km in Georgia and 1076 km in Turkey. Host government agreements with the governments of three countries have been signed in 2003. The agreements have a term of 40 years from the date of first shipment of oil through BTC, which was in 2006. Current BTC throughput including ACG oil is ca 650 million barrels per day.  BTC overall capacity is around 1 million barrels per day. 


  

Partnerships for the future

As part of the Regional Sustainable Development programme, the Community Investment Programme (CIP) was initiated primarily to manage stakeholder involvement and impacts during the construction of the two pipelines, and to create sustainable social and economic development in the local communities along the pipeline routes in Azerbaijan, Georgia and Turkey.

In cooperation with local and international non-governmental organisations, the CIP has implemented programmes to create jobs, ensure wider access to improved social infrastructure such as schools and hospitals, and strengthen farming. 

Nurturing the next generation

Statoil is committed to fostering the next generation of Azerbaijani talent in science and technology. In order to improve educational opportunities and experience transfer relevant to the oil industry, we are also supporting a partnership between the State Oil Academy of Azerbaijan and the Norwegian University of Science and Technology (NTNU), facilitated by the United Nations Development Programme (UNDP). We are also cooperating with Khazar University and the Diplomatic Academy of Azerbaijan.

Find out about Statoil’s co-sponsorship of the third Student Scientific and Technical Conference at Baku Higher Oil School below.