A bp plc-led joint venture has signed commercial agreements for the development of gas reserves in Azerbaijan. The new agreements amend the existing Azeri-Chirag-Gunashli (ACG) production sharing agreement framework, said partner MOL Group in a release Sept. 25 (OGJ Online, Sept. 14, 2017).
The JV will explore, appraise, develop, and produce ACG field gas reservoirs in the Azerbaijan sector of the Caspian Sea.
ACG is primarily an oil field, but non-associated gas reservoirs were identified beneath and above the producing oil reservoirs. ACG non-associated gas resources are expected to contain up to 4 tcf gas in place.
Drilling of the initial producing well from the West Chirag platform has begun. First gas is expected in 2025. The well will deliver appraisal through production and is expected to underpin future development plans.
bp is operator of ACG with 30.37% interest. Partners are SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), and ONGCVidesh (2.31%).
Additionally, MOL Group and State Oil Company of the Republic of Azerbaijan (SOCAR) signed a memorandum of understanding (MoU) in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region. Under the MoU, MOL Group intends to contribute experience, technical and commercial knowledge, and financial resources to further develop Azerbaijan’s hydrocarbon extraction.
