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Akbar Novruz

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bp’s recently released third-quarter results for 2024 reveal a year marked by both high-stakes innovation and renewed commitment to sustainable development in Azerbaijan's energy sector. These advances could reshape the energy landscape in the Caspian region and redefine bp’s role as a global leader in technologically advanced extraction and environmentally conscious production.

What is new in the Azeri-Chirag-Deepwater Gunashli (ACG) fields?

The iconic Azeri-Chirag-Deepwater Gunashli (ACG) field, a consortium-led project with bp as the operator, remains one of the Caspian’s most critical oil sources. This year saw the launch of a 4-dimensional high-definition ocean bottom node seismic program, a technological feat that is the largest-ever seismic commitment in bp’s history. This five-year initiative spans 740 square kilometers and aims to deepen understanding of the Balakhany and Fasila reservoirs, laying the groundwork for safer and more efficient extraction.

Moreover, the addition of the Azeri Central East (ACE) platform in mid-April was a major milestone. Dubbed the world’s most advanced bp-operated platform, ACE integrates digital automation and a cutting-edge drilling rig, significantly reducing the need for labour-intensive processes while enhancing operational safety and reducing emissions. Production from ACE is expected to rise to 24,000 barrels per day by year-end as new wells come online, marking a notable success in bp’s long-term vision since the renewal of the ACG production-sharing agreement in 2017. With an average production of 339,000 barrels per day in the first nine months, ACG continues to demonstrate stability and reliability. During the third quarter, the field produced oil from 147 wells, with additional infrastructure supporting water and gas injection to maintain reservoir pressure. Drilling also remains robust, with 11 new oil wells and two water injectors completed this year. In addition, the ACG delivered 6.5 million cubic meters of associated gas per day to Azerbaijan, reinforcing bp’s role in the region’s energy security.

Non-Associated Gas (NAG) Reserves

In September of the current calendar year, bp and SOCAR unveiled a strategic addition to the ACG agreement, enabling the exploration and development of the field’s substantial non-associated gas (NAG) reserves. Believed to contain up to 4 trillion cubic feet of gas, these resources promise to be transformative for the Caspian energy market. Drilling has commenced on an initial well to produce gas from two key reservoirs, with the first production expected in 2025. This expansion underscores bp’s pivot to meet the growing demand for natural gas across the region.

Shah Deniz Field & the South Caucasus Pipeline

bp’s other major project, the Shah Deniz gas field, produced a staggering 20 billion cubic meters of gas in the first three quarters, sustaining supplies to Türkiye, Georgia, Azerbaijan, and Europe. The South Caucasus Pipeline (SCP), a key transport route for Shah Deniz gas, maintained a daily average of 61.7 million cubic meters, solidifying Azerbaijan’s position as a major gas supplier to Europe and Türkiye. This infrastructure aligns with bp’s commitment to regional energy security and reinforces Azerbaijan’s role in Europe’s diversification of energy sources.

Sangachal Terminal: Processing Powerhouse

The Sangachal terminal, where the oil and gas from the ACG and Shah Deniz projects converge, processed and exported approximately 166 million barrels of oil this year. Most of this oil was transported through the Baku-Tbilisi-Ceyhan (BTC) pipeline. With an impressive daily capacity of 1.2 million barrels of crude oil and 81 million cubic meters of gas, this facility spotlights Azerbaijan's ability to meet the growing demands of its hydrocarbon industry.

Social investments & sustainable growth

bp’s 2024 report highlights an ongoing commitment to Azerbaijan’s socio-economic development, investing over $1.8 million in social projects. These initiatives include educational programs, environmental conservation, capacity building, and support for local enterprises. With a workforce that is now 90% Azerbaijani in professional roles and 100% nationalized for non-professional roles, bp is fostering a locally-driven energy sector, amplifying its impact on the community and supporting Azerbaijan’s economic resilience.

bp and Azerbaijan continue to collaborate on large-scale projects, the strategic developments at ACG, Shah Deniz, and Sangachal reflect a shared vision of sustainable growth, energy security, and technological advancement. The expanded focus on non-associated gas resources and green technology points to a diversified and robust future for Azerbaijan’s energy industry.