BP Launches Gas Production at Azerbaijan’s Giant ACG Field

(Credit: BP)

BP and its partners have started non-associated gas (NAG) production at the Azeri-Chirag-Gunashli (ACG) field offshore Azerbaijan, marking the first commercial gas production from one of the world's largest oil-producing fields.

The initial gas-producing well was drilled from the West Chirag platform in the Caspian Sea, and is intended to provide early production as well as reservoir and flow data to support appraisal of the field's gas resources and future development planning.

The ACG partners estimate the field's non-associated gas resources contain around 4 trillion cubic feet of recoverable reserves, with potential upside to 6 trillion cubic feet.

“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," said Gio Cristofoli, bp regional president for Azerbaijan, Georgia and Türkiye.

The first production comes from a well drilled last year into two priority gas reservoirs, the Qirmaki Upper Sand and the deeper Qirmaki Lower Sand formations located beneath the producing oil reservoirs. The well confirmed gas resources in the Qirmaki Upper Sand reservoir and encountered high-pressure gas in the Qirmaki Lower Sand reservoir.

Initial production activities are focused on testing the Qirmaki Lower Sand reservoir.

Gas and condensate from the well will be transported to the Sangachal terminal using existing ACG offshore infrastructure, integrating gas production into the field's established oil development system.

The gas project follows a September 2024 addendum to the ACG production sharing agreement that enabled exploration, appraisal, development and production from non-associated gas reservoirs at the field. The agreement runs through the expiry of the existing ACG PSA in 2049.

The ACG consortium comprises operator BP (30.37%), SOCAR (35.3%), MOL (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%) and ONGC Videsh (2.92%).