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UK-headquartered energy giant BP has achieved the start of non-associated gas (NAG) production at its giant oilfield in the Caspian Sea off the coast of Azerbaijan.
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BP, as the operator of the Azeri–Chirag–Gunashli (ACG) field development, has confirmed the beginning of non-associated gas production operations on the ACG field in the Azerbaijan sector of the Caspian Sea, on behalf of the ACG co-venturers, including SOCAR, MOL, Inpex, ExxonMobil, TPAO, and ONGC Videsh.
The start of production is perceived to mark the first-ever commercial gas production operations on ACG, said to be one of the world’s largest oil-producing fields. The initial NAG well, drilled from the existing West Chirag platform, is seen as a critical first step in unlocking the field’s significant non-associated gas resource potential.
Aside from delivering early production, the well is believed to provide important reservoir and flow data, supporting appraisal of the resource base to inform future full-field gas development. The NAG resources of ACG are believed to be significant, with an estimated 4 trillion cubic feet of recoverable reserves and a potential upside of 6 trillion cubic feet.
Gio Cristofoli , BP’s Regional President for Azerbaijan, Georgia and Türkiye, commented: “This is a big day for Azerbaijan and for the ACG co-venturers. ACG has a long and successful history and now, nearly three decades into oil production, the field continues to hold potential to deliver value for the nation and its investors as it starts this new chapter.
“With the launch of its gas journey alongside oil, ACG is now uniquely positioned as an integrated oil and gas asset, leading the regional industry and contributing to Azerbaijan’s plans to increase energy supplies to Europe while supporting the country’s energy transition efforts. ”
According to BP, ACG’s first NAG production operations have commenced at the initial producer well drilled last year into two priority NAG reservoirs, the shallower Qirmaki Upper Sand and the deeper Qirmaki Lower Sand, both located beneath the producing oil reservoirs.
The well confirmed the presence of gas resources in the Qirmaki Upper Sand reservoir and encountered high-pressure gas in the Qirmaki Lower Sand reservoir. The first NAG operations are focused on the Qirmaki Lower Sand reservoir for an initial period of well and reservoir testing activities.
The operator explains that gas and condensate produced from the well will be directed to the Sangachal terminal via the existing ACG infrastructure through the integration of oil and gas development systems, enabling efficient use of existing offshore facilities.
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The addendum to the existing ACG production sharing agreement (PSA), enabling the exploration, appraisal, development of and production from the NAG reservoirs of the ACG field, was announced on September 20, 2024.
NAG reservoirs are multiple geological formations beneath and above the currently producing oil reservoirs, and which were not initially included in the existing ACG PSA. The addendum is effective until the end of the existing ACG PSA in 2049.
BP elaborates that there is potential for billions of dollars of capital to be invested in the full field development of NAG reservoirs of the ACG field over the next 23 years, subject to exploration and appraisal of the NAG reservoirs.
The participating interests of the ACG co-venturers in the NAG project are the same as in the existing ACG PSA, encompassing BP (operator, 30.37%), SOCAR (35.3%), MOL (9.57%), Inpex (9.31%), ExxonMobil (6.79%), TPAO (5.73%), and ONGC Videsh (2.92%).
about 1 month ago
UK-headquartered energy giant BP has achieved the start of non-associated gas (NAG) production at its giant oilfield in the Caspian Sea off the coast of Azerbaijan.
