BP has set its sights to extend its Azerbaijan presence until 2050, as the UK supermajor is expected to sign a deal at the end of the month for one of the world’s largest oilfields.
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The ACG field. Image from BP. |
The current deal is set to end in 2024, however, in December 2016, BP as head of the Azerbaijan International Operating Co. (AIOC), which operates the Azeri-Chirag-Gunashli (ACG) development in the Caspian Sea, signed a letter of intent with Azerbaijan state oil firm Socar for the 30-year extension.
According to news reports, Gary Jones, BP regional head for Azerbaijan, Georgia and Turkey, told reporters the production sharing contract is expected to be signed at the end of this month.
"End of June is a very reasonable time for it," Jones said. "It's a big deal. We want to get it right."
Discovered in the early 1970s, ACG is about 100km east of Baku. The giant field is the biggest producing oil field in the Caspian Sea and covers an area that spans more than 432sq km in 120m-170m water depth. The depth of the reservoir is 2000-3500m.To date, the field has produced more than 3 billion bbl with some US$33 billion of investment.
There are six producing platforms on ACG: Chirag 1, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag; and two process, gas compression, water injection and utilities (PCWU) platforms, equipped with latest technologies..
The shareholders in AIOC are BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU and ONGC Videsh.
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