What was the rationale behind creating a consortium of international oil companies in this major contract with Azerbaijan?
For optimum field development, it makes common sense and good oil field practice to bring the three fields-Azeri, Chirag and the deep water portion of the Guneshli-under one unified plan. The fields are geologically contiguous with each other. Secondly, a consortium of companies eliminates the very tedious and very complex process of each individual company or small group of companies attempting to negotiate for a separate field sector. The Azeri, Chirag and Gunashli Fields in the Caspian that are being developed by AIOC. To negotiate with one group is clearly far easier than negotiating with three. To sign such a contract with such an array of foreign oil companies was a new experience for any country in the former Soviet Union. I might add that the Western Oil Consortium contract with Azerbaijan is the first truly major international oil contract to have been signed in the FSU (former Soviet Union) which is proving successful. So all in all, a state-led consortium such as the one org
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