TODAY.AZ / Business

500 mln tonnes of oil produced at ACG

10 January 2020 [13:29] - TODAY.AZ

By Azernews

By Rasana Gasimova

Azerbaijan’s average daily oil production at the Azeri-Chirag-Guneshli (ACG) block of fields in 2019 amounted to 535,000 barrels, BP-Azerbaijan has reported in its website.

On December 26, 2019, the total oil production from Azeri-Chirag-Guneshli reached 500 million tons.

“In 2019, the average daily oil production from the ACG block amounted to 535,000 barrels. On December 26, 2019, the total oil production from this contract area reached 500 million tons. Also, over the entire period since the start of development in November 1997, over 45 billion cubic meters of associated gas were produced in the block, ”the message reads.

It is also noted that the half a billion tonnes of oil produced from ACG since 1997 have been transported primarily via the Baku-Tbilisi-Ceyhan and Western Route Export pipelines from the Sangachal terminal near Baku across Azerbaijan, Georgia and Turkey to the world markets.

BP noted that the average daily oil production at the ACG block amounted to 584,000 barrels in 2018. Thus, in 2019, this indicator contracted by 8.4 percent.

The decline in oil production in 2019 is associated with a planned two-week shutdown for the scheduled maintenance of the Central Azeri and West Chirag platforms.

According to the information provided by BP-Azerbaijan, the total investment in the development project of the Azeri-Chirag-Guneshli block amounted to $38 billion.

The initial ACG Production Sharing Agreement (PSA) was signed on September 20, 1994. This agreement provided for the development of the block until 2024.

In 2017, the ACG PSA was extended till the end of 2049. Under the new contract, Shareholders of the Azeri–Chirag–Gunashli development include BP with 30.37 percent of stakes, SOCAR (25 percent), American Corporation (9.57 percent), ExxonMobil (6.79 percent), ONGC Videsh (2.31 percent), Inpex (9.31 percent), ITOCHU Oil (3.65 percent), Statoil (7.27 percent) and TPAO (5.73 percent).

ACG currently has eight offshore platforms – six production platforms and two process, gas compression, water injection and utilities platforms. The next development project of ACG - the Azeri Central East (ACE) - is currently in the execute phase with first oil expected in 2023.


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