BP ups gas output at Azerbaijan's Shah Deniz 8%, cuts oil at ACG block 6% in 2024

MOSCOW. Feb 13 (Interfax) - BP raised gas production at the Shah Deniz field offshore Azerbaijan 7.7% in 2024 to 28 billion cubic meters, the press office of BP in Azerbaijan said.

It produced 35 million barrels or more than 4 million tonnes of condensate, unchanged from a year before.

Production capacity is currently running at 79 mcm of gas per day or 29 bcm per year.

The contract to develop the Shah Deniz field was signed in Baku in 1996. Equity participation in the contract is currently as follows: BP plc , operator, with 29.99%; Russia's Lukoil with 19.99%; Turkey's TPAO with 19%; Azerbaijan's Cenub Qaz Dehlizi with 16.02%; Iran's NICO with 10%; and Hungary's MVM Group with 5%.

The consortium's overall costs fell 3.8% in 2024 to $2.969 billion, with operating costs rising 0.4% to just over $2.203 billion and capex falling 14.1% to $766 million, mostly related to Stage 2 of the project.

The company also said the South Caucasus Pipeline carried 62.8 mcm of gas per day, up from 60.1 mcm a year previously. Operating cost were $81 million and capex $20 million.

Oil production at the Azeri-Chirag-Gunashli (ACG) block offshore Azerbaijan reached approximately 125 million barrels or 16 million tonnes in 2024.

ACG produced 133 million barrels of oil or 18 million tonnes in 2023 so production in barrels decreased 6% last year.

Average daily oil production at ACG in 2024 was 342,000 bpd in 2014 versus 363,000 bpd in 2023. An average of 23,000 bpd (also 23,000 bpd) was produced from the Chirag platform, with Central Azeri producing 97,000 bpd (96,000 bpd), West Azeri 75,000 bpd (86,000 bpd), East Azeri 51,000 bpd (58,000 bpd), Deepwater Gunashli 57,000 bpd (67,000 bpd), West Chirag 29,000 bpd (33,000 bpd) and Azeri Central East, where production began in April 2023, 10,000 bpd,.

The cost of the ACG block development project fell 9.6% versus the previous year to $1.828 billion. This includes operating expenses of $535 million, up 6.2%, and capital costs of $1.293 billion, down 14.8%.

ACG completed 14 oil production and three water injection wells in 2024. At the end of 2024, 148 oil wells were producing, while 46 were used for water and seven for gas injection.

BP Exploration (Caspian Sea) Limited delivered an average daily 7 mcm of associated gas or 2.5 bcm in total for the year to the State Oil Company of the Azerbaijani Republic (SOCAR) in 2024, up 25% from 5.5 mcm or 2 bcm in total in 2023. The remainder of the associated gas produced was re-injected for reservoir pressure maintenance. The APG is supplied to SOCAR free of charge.

The contract for the development of the Azeri, Chirag and Deepwater Gunashli fields was signed on September 20, 1994 and expired in 2024. However, on September 14, 2017, a new contract for the development of the ACG block to 2050 was signed.

BP has a 30.37% stake in the project and SOCAR holds 31.655%. The other parties are Hungary's MOL with 9.57%, ExxonMobil with 6.79%, ONGC Videsh with 2.925%, Japan's Inpex and Itochu with 9.31% and 3.65%, respectively and Turkey's TPAO with 5.73%.