ACG celebrates first non‑associated gas

bp, as operator of the Azeri–Chirag–Gunashli (ACG) field development, announced on behalf of the ACG co‑venturers – SOCAR, MOL, INPEX, ExxonMobil, TPAO and ONGC Videsh – the commencement of non‑associated gas (NAG) production operations on the ACG field in the Azerbaijan sector of the Caspian Sea.

This marks the first-ever commercial gas production operations on ACG, one of the world’s largest oil-producing fields.

The initial NAG well, drilled from the existing West Chirag platform, is a critical first step in unlocking ACG’s significant non-associated gas resource potential. As well as delivering early production, the well provides important reservoir and flow data, supporting appraisal of the resource base to inform future full-field gas development.

“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.” Gio Cristofoli, bp’s regional president for Azerbaijan, Georgia and Türkiye

The NAG resources of ACG are believed to be significant, with an estimated 4 trillion cubic feet of recoverable reserves and a potential upside to 6 trillion cubic feet.

Gio Cristofoli, bp’s regional president for Azerbaijan, Georgia and Türkiye, said: “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.”

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.

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 the efficient use of existing offshore facilities.

Notes to editors

• 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 20 September 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. During the next 23 years, and subject to exploration and appraisal of the NAG reservoirs, there is potential for billions of dollars of capital to be invested in the full field development of NAG reservoirs of the ACG field.
  
  
• The participating interests of the ACG co-venturers in the NAG project are the same as in the existing ACG PSA: bp – operator (30.37%), SOCAR (35.3%), MOL (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%), ONGC Videsh (2.92%).
  
  

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