BP completes first phase of five-year seismic program at Azerbaijan's ACG block

BAKU. Aug 7 (Interfax) - BP has completed the first phase of a 4D seismic survey at the Azeri-Chirag-Gunashli (ACG) block of oilfields offshore Azerbaijan, said Gary Jones, BP regional president for Azerbaijan, Georgia and Turkey.

"The first phase of the seismic program, which began in January 2024, has been completed ahead of schedule and below budget," Jones wrote in a letter to Azerbaijani Prime Minister Ali Asadov.

Jones said the five-year 4D seismic project at ACG was the largest seismic data acquisition program ever undertaken by BP globally.

"The research will help ACG's partners effectively optimize the development of these fields in the future," Jones said.

BP launched the program on January 20, 2024. Total cost is around $370 million and duration is five years, from 2024-2028. The program, which will focus on ACG's Balakhany and Fasila reservoirs, will cover an area of 740 square kilometer under source and 507 square kilometers under receivers.

The contract for the development of the Azeri, Chirag and Deepwater Gunashli fields was signed on September 20, 1994 and came into force on December 12 of the same year. The agreement expired in 2024. However, in September 2017, a new contract for the development of the ACG block through 2050 was signed.

BP currently has a 30.37% stake in the project, SOCAR has 25%, Hungary's MOL owns 9.57%, ExxonMobil has 6.79%, Japan's Inpex Corporation and Itochu Oil own 9.31% and 3.65%, respectively, Norway's Equinor has 7.27%, Turkey's TPAO owns 5.73%, and India's ONGC Videsh has 2.31%.

Equinor signed an agreement to sell its share in the SOCAR project in December 2023; the transaction will be considered complete after the parties have fulfilled a number of obligations. India's ONGC Videsh said in July that it had signed a definitive sale purchase agreement with Norway's Equinor to acquire a 0.615% interest in the ACG project, with closing expected by the end of this year.