The international joint venture (JV) partners, led by BP as the operator, have signed commercial agreements for the development of gas reserves at the giant Azeri-Chirag-Gunashli (ACG) gas field offshore Azerbaijan.
After the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, operator of the JV, MOL is the third largest shareholder in the giant Azeri-Chirag-Deepwater Gunashli (ACG) field, where non-associated gas (NAG) reservoirs were identified beneath and above the oil producing reservoirs.
The partners have now agreed on the development and commercial exploitation of these reserves.
MOL has also signed a memorandum of understanding (MoU) with SOCAR to evaluate further potential cooperation opportunities in the area of hydrocarbon exploration in Azerbaijan.
The commercial agreements amend the existing ACG production sharing agreement (PSA) framework, enabling the parties to progress the exploration, appraisal, development of and production from the gas reservoirs of the ACG field.
ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (112 billion cubic meters) in place.
Drilling of the initial producing well has already started from the West Chirag Platform, with first gas expected in 2025. The well is important as it will deliver appraisal through production which is expected to underpin future development plans.
In addition, MOL Group Chairman and CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf signed an MoU in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region.
Under the Memorandum of Understanding, MOL Group expressed intention to contribute their experience, technical and commercial knowledge, and financial resources to further develop Azerbaijan’s hydrocarbon extraction.
“Today is an important milestone for MOL Group as after years of developing and producing oil fields in Azerbaijan, we extend our footprint by entering into gas reservoir development. This is thanks to the outstanding cooperation with SOCAR and the partners of the ACG project,” said Zsolt Hernádi, Chairman and CEO of the MOL Group.
The ACG field joint venture include BP (30.37%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGCVidesh (2.31%).