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Nazrin Abdul

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Although Azerbaijan is actively pursuing economic diversification, the energy sector continues to be the cornerstone of the country’s development strategy. Currently, Azerbaijan supplies energy to 16 countries and maintains partnerships with leading global companies on major oil and gas projects. Among these collaborators, bp plays a particularly vital role, reflecting both long-term confidence in the Azerbaijani market and the global importance of the Azeri-Chirag-Gunashli and associated assets.

On March 6, Giovanni Cristofoli, bp’s Regional President for Azerbaijan, Georgia, and Türkiye, held a media briefing outlining ongoing projects, future plans, and the company’s sustained partnership with Azerbaijan. He emphasized that the Azerbaijani government has fostered a highly favorable investment climate, which has been instrumental in attracting foreign capital and driving economic growth.

“All necessary steps are being taken to support business development, and this, in turn, accelerates the country’s broader economic progress,” Cristofoli said, underscoring the symbiotic relationship between government policy and private-sector investment.

Cristofoli also highlighted the centrality of bp’s operations in Azerbaijan to the company’s global portfolio, both strategically and financially. He noted that Azerbaijan serves as a benchmark for operational excellence within bp, with the country consistently ranking among the top performers across key industry indicators.

A critical metric in this assessment is operational reliability, measured by the number of days production facilities remain fully functional throughout the year. In addition, bp employs rigorous benchmarking practices, comparing performance against global peers to ensure efficiency, cost-effectiveness, and competitiveness in an increasingly complex energy market.

Focus on Azeri-Chirag-Gunashli (ACG)

bp’s primary responsibility in Azerbaijan is maximizing oil output from the Azəri-Chirag-Gunashli (ACG) field while managing the natural decline in reservoir productivity. Cristofoli described ACG as one of the world’s largest and most significant oil fields, managed at industry-leading standards.

He outlined three main strategies:
- Increasing drilling activity: bp has boosted drilling operations by over 30% through partnerships with SOCAR and contractors, achieving greater efficiency with existing equipment and costs.
- Reservoir activation: By injecting water and gas into targeted areas, bp maintains pressure to sustain production.
- Advanced technology: High-precision seabed sensors are used for seismic surveys, enhancing reservoir management.

bp also plans to begin production from “free gas” reservoirs within ACG during the summer, with new wells expected to significantly increase output.

Cristofoli reported that reliability indicators at the Shah Deniz gas field remain at 100%. bp is advancing drilling operations with six new wells planned and progressing on the Shah Deniz Compression project, which will reduce reservoir pressure and enable higher gas recovery.

Additionally, bp is conducting seismic and geological exploration to identify new sources, with the Shafag-Asiman block highlighted as a promising area.

Addressing the future of the Baku-Tbilisi-Ceyhan (BTC) pipeline, Cristofoli clarified that bp is not “abandoning” the pipeline but fulfilling contractual obligations established 30 years ago. Under these agreements, pipeline operations must be transferred to relevant state authorities within specified timelines. Similar transitions have already occurred with the South Caucasus Pipeline in 2021.

The BTC pipeline, operational since 2006, transports oil from ACG and condensate from Shah Deniz across Azerbaijan, Georgia, and Türkiye to the Mediterranean port of Ceyhan. It also facilitates oil exports from Turkmenistan and Kazakhstan. The pipeline is operated by BTC Co., whose shareholders include bp, SOCAR, MOL, TPAO, Eni, TotalEnergies, ITOCHU, ONGC Videsh, ExxonMobil, and INPEX.

Cristofoli also addressed bp’s cooperation with LUKOIL and Iran’s NICO in the Shah Deniz project amid international sanctions. He explained that bp, together with SOCAR, the European Union, and the United States, developed robust compliance mechanisms that allow operations to continue without disruption. These mechanisms ensure that all activities adhere to international regulations while maintaining the operational integrity of the project and safeguarding the interests of all consortium partners. By implementing strict oversight and transparent protocols, bp has successfully mitigated legal and operational risks associated with working alongside sanctioned entities.

This moment underscores bp’s ability to balance the realities of geopolitics with the demands of energy production. Operating in a region shaped by complex regulations and shifting alliances, the company has managed to keep Shah Deniz running smoothly while respecting international sanctions. That continuity matters—not just for bp’s bottom line, but for Azerbaijan’s role as a trusted energy supplier to the world.

By staying compliant and keeping operations steady, bp helps ensure that Azerbaijan’s gas exports remain reliable. It’s a reminder that large-scale projects don’t succeed on engineering alone, they thrive when collaboration, foresight, and careful risk management come together. In this case, bp’s partnership with SOCAR and other stakeholders shows how diligence and trust can sustain energy flows even in uncertain times.