The Azerbaijan Government and the State Oil Company of the Republic of Azerbaijan (SOCAR) have signed an amended and restated agreement with BP-led group for the joint development and production sharing (PSA) for the Azeri, Chirag and Gunashli (ACG) offshore fields in Caspian Sea.

The group comprises Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh.

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The agreement is subject to ratification by the parliament of the country.

Under the new contract, the co-venturers will pay a bonus of $3.6bn to the State Oil Fund of Azerbaijan, while SOCAR’s equity share in the PSA will increase to 25% from the existing 11.65%.

During the next 32 years, the deal can facilitate an investment of more than $40bn at the ACG in the Azerbaijan sector of the Caspian Sea.

"During the next 32 years, the deal can facilitate an investment of more than $40bn at the ACG in the Azerbaijan sector of the Caspian Sea."

The original contract was signed in 1994, with more than $33bn having since been invested in ACG.

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During the first half of this year, combined production from ACG averaged 585,000bpd.

Currently, it has eight offshore platforms including six production platforms and two process, gas compression, water injection and utilities platforms.

BP group chief executive Bob Dudley said: “Today’s contract is perhaps an even more important milestone in the history of Azerbaijan as it ensures that over the next 32 years we will continue to work together to unlock the long-term development potential of ACG through new investments, new technologies and new joint efforts to maximise recovery.”

BP will continue to remain the operator of the ACG PSA with 30.37% participating interest.