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BP sanctions $6 billion development offshore Azerbaijan



BP and its partners have sanctioned the Azeri Central East (ACE) project, the next stage of development of the giant Azeri-Chirag-Deepwater Gunashli (ACG) oilfield complex in the Azerbaijan sector of the Caspian Sea.
The Azeri Central East (ACE) project will add to BP's already extensive operations offshore Azerbaijan
(The Azeri Central East (ACE) project will add to BP’s already extensive operations offshore Azerbaijan. Image via BP).

At a total cost of $6 billion, the development will see the installation of a new offshore platform and facilities designed to process up to 100,000 barrels of oil per day. The project is expected to achieve first production in 2023 and produce up to 300 million barrels over its lifetime.

The Azeri Central East (ACE) project is centred on a new 48-slot production, drilling and quarters platform located mid-way between the existing Central Azeri and East Azeri platforms in a water depth of approximately 140 metres. The project will also include new infield pipelines to transfer oil and gas from the ACE platform to the existing ACG Phase 2 oil and gas export pipelines for transportation to the onshore Sangachal Terminal. In addition, there will be a water injection pipeline installed between the East Azeri and ACE platforms to supply injection water from the Central Azeri compression and water injection platform to the ACE facilities.

Commenting on the sanctioning of the project, Rovnaq Abdullayev, president of SOCAR, Azerbaijan’s state oil company, said:

“Today’s sanctioning marks yet another important milestone in the development of ACG for the benefit of the nation, which began 25 years ago with the signing of the Contract of the Century. For decades, SOCAR has been reinvesting Azerbaijan’s oil revenues in the development of a highly-qualified workforce and modern industrial facilities in our country. Today we have world-class factories, production and installation complexes, marine vessels and a highly-skilled local workforce, which have created opportunity for the construction and installation of the ACE platform by Azerbaijani specialists throughout the country. Looking forward, we expect more than three billion barrels of additional output from ACG. This strategic decision supports Azerbaijan’s increasing role as an energy supplier for the regional and global markets”.

Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey, added:

“Today’s announcement supports the long-term production plans we set for ACG when we extended the PSA. It demonstrates our commitment to work with SOCAR and Azerbaijan’s government to continue to unlock ACG’s resources more efficiently and competitively”.

Construction activities on the project are expected to begin this year running through to mid-2022. It’s expected that these construction activities will predominantly use in-country resources, with the construction phase creating as many as 8,000 jobs at peak.

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Tags: Oil & Gas
Recent Comments
I speak fluent Azerbaijani language (same as Turkish) and I designed some SOLAR Centaur-Turbo-Compressors for their initial phases. Azeri-is a person living in Azerbaijan, Chirag-is a trainee person, Gunashli-is a Sunny area. Tekfen and BP is doing good work there, but, I don't understand WHY their oil & gas is not going via the Russian route, but going via Baku-Ceyhan-Pipeline, under Erdogan's wishes and command. Same goes for Shah-Deniz's gas. Well, as a Christian and a US-Citizen, I do not trust Muslim leaders too much.
ANDRE GURSES, 24 April 2019
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Siamak Mohammadi , 25 September 2019
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BP sanctions $6 billion development offshore Azerbaijan - Time to read 3 min
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