BP launches non-associated gas production at Azeri-Chirag-Gunashli block
BAKU. June 1 (Interfax) - BP plc , as the operator of the development project for the Azeri-Chirag-Gunashli (ACG) block of fields, has started non-associated gas (NAG) production at ACG in the Azerbaijani sector of the Caspian Sea, BP in Azerbaijan said in a press release.
"BP today announced 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 company said.
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," BP said.
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," BP said.
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.
"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 regional president for Azerbaijan, Georgia and Turkey, was quoted as saying.
With the launch of gas production 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, he said.
Drilling of the initial well, which was launched from the West Chirag platform in 2024, was completed in the spring of 2025.
The shareholders of the project to develop the ACG block on September 20 signed a second addendum to the September 14, 2017 production sharing agreement (PSA) on the project to enable production of gas from deep reservoirs at the block. Under the addendum, he companies will move ahead with the exploration, appraisal, development and production of natural gas resources at the Azeri and Chirag fields and the deep water portion of the Gunashli field. The addendum is effective until the end of the existing ACG PSA in 2049. The participating interests of the parties in the deep gas project are the same as in the existing ACG PSA.
At the first stage, production of deep gas from the ACG block is expected to reach around 0.5 bcm per year. Gas from the first drilled appraisal well will be sold to the State Oil Company of the Azerbaijani Republic (SOCAR).
The contract to develop the Azeri, Chirag and Deepwater Gunashli fields was signed on September 20, 1994 and expired in 2024. However, in September 2017, a new contract for the development of the ACG block to 2049 was signed.
BP has a 30.37% stake in the ACG 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%.
