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Qabil Ashirov

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Yesterday, with the participation of Azerbaijani President Ilham Aliyev, the symbolic launch of the upper modules of the "Azeri-Central-Eastern" platform in the Bayil construction and installation area was of another important event.

Azerbaijan, which has been producing oil for hundreds of years, is launching another pilot project looking to carry on its oil production on the newly constructed platform as of next year.

It should be noted that the final investment decision on the "Azeri-Central-Eastern" project is the first major investment of the ACG partners after the extension of the Production Sharing Agreement on the "Azeri-Chirag-Guneshli" (ACG) until 2049 in 2017. The $6 billion project includes a new offshore platform and other facilities with a production capacity of up to 100,000 barrels per day. However, it is expected the production of oil to grow up to 300 million barrels throughout its life.

In a comment to Azernews about the contribution of the newly launched platform, expert on economy Eyyub Karimly said the project promises more to Azerbaijani economy in the energy sector as well as saying that it may give impetus to increase of oil and gas production in the country.

“The ACE will have a positive effect on Azerbaijan's oil production and the labor market and the investment potential of the country as well. Besides, it will increase the inflow of additional foreign currency to the country which in turn will enable to keep manat’s exchange rate stable, and also increase foreign exchange reserves. As is known, amid the ongoing war between Russia and Ukraine, energy security plays an important role in the world, and in this regard, increasing oil production with the help of this platform has a positive effect on the international image of Azerbaijan,” the expert opined.

Karimly pointed out that this investment is a new and large-scale investment made by foreign companies in Azerbaijan after many years, which will also pave the way for the introduction of new technologies in oil production and processing.

As for the slump of demand for oil and gas, the pundit said that today the world is preparing for the post-oil era.

“In this regard, great importance is given to the application and production of alternative and renewable energies, and large investments are made. A lot of great works are being done in this direction in and out of Azerbaijan. As we known, Azerbaijan has 200 GW of alternative and renewable green energy potential despite the fact some positive effect of oil on the Azerbaijani economy will continue for some time. According to preliminary forecasts, Azerbaijan's oil production will continue until 2050, despite the tendency for its depletion. Further, given the introduction of new technologies that allow oil production from deeper wells, Azerbaijan may carry on the production of oil and gas after 2050 as well as launching new projects in the new oil field,” the pundit opined.

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