BAKU, Azerbaijan, Aug. 3. Azerbaijan's state
oil company SOCAR has acquired Japanese ITOCHU Corp's stake in the
Azeri-Chirag-Gunashli offshore oilfield development project, SOCAR
said.


The transaction was completed in accordance with applicable
legislation, SOCAR's internal procedures and contractual
obligations, the company said, adding that all relevant acquisition
documents had been signed.


Prior to the deal, ITOCHU held a 3.65% participating interest in
ACG. Following the acquisition, SOCAR's stake in the project
increased from 31.65% to 35.3%.


SOCAR President Rovshan Najaf said ACG had made a significant
contribution to Azerbaijan's and the region's energy security for
many years.


"The start of production of the first non-associated natural gas
from the ACG block earlier this year created new opportunities for
the project's further development and for expanding Azerbaijan's
gas production potential," he said.


Najaf thanked ITOCHU for its long-standing partnership and
contribution to the project, expressing confidence that ACG would
continue to develop successfully through the partners' joint
efforts, high operational standards and mutual trust.


ITOCHU Chief Operating Officer and President of the Energy &
Chemicals Company Tetsuya Yamada said the company had built a
strong partnership with SOCAR since becoming the first Japanese
company to invest in Azerbaijan in 1996.







He said the decision to transfer the stake reflected both
ITOCHU's evolving strategic priorities and its commitment to
deepening cooperation with SOCAR.


"The sale does not represent ITOCHU's withdrawal from
Azerbaijan. Rather, it marks the beginning of a new phase in our
partnership," Yamada said, adding that Azerbaijan would remain an
important market for the company's investment and trading
activities.


BP Exploration (Caspian Sea) Limited is the operator of the ACG
production sharing agreement on behalf of the consortium
partners.


Oil produced at ACG is exported via the Baku-Tbilisi-Ceyhan
(BTC) pipeline and the Western Route Export Pipeline (WREP) through
Azerbaijan, Georgia and Türkiye.


The ACG production sharing agreement was originally signed on
Sept. 20, 1994, covering the development of the Azeri, Chirag and
deepwater Gunashli fields in the Azerbaijani sector of the Caspian
Sea.