BP reveals investment volumes

3 July 2019 19:58 (UTC+04:00)

By Leman Mammadova

BP, a British oil and gas company, has revealed the total volume of its and partners’ investments in the projects for the development of the Azeri-Chirag-Guneshli (ACG) and Shah-Deniz fields, the construction of the Baku-Tbilisi-Ceyhan oil pipeline (BTC) and the South Caucasus pipeline in 2014-2018.

According to BP’s Azerbaijan Sustainability Report 2018, the total investments for the mentioned projects amounted to $35.4 billion for the period of 2014-2018, including capital investments of $28.6 billion and operating investments of $6.7 billion.

Some 474.5 million tons of oil was produced at the ACG block from the start of its development in November 1997, to January 1, 2019.

In particular, 97.5 million tons of oil was produced at the Chirag platform from the start of its commissioning, 120 million tons - at Central Azeri, 108.4 million tons – at West Azeri, 63.5 million tons – at East Azeri, 64.8 million tons – at Deepwater Guneshli, and 20.4 million tons – at Western Chirag platform.

As of late 2018, there were 117 production wells, 44 water and 7 gas injection wells on the ACG block.

Meanwhile, 100 billion cubic meters of gas and 24.6 million tons of condensate were produced at the Shah-Deniz field since its commissioning in November 24, 2006, to late 2018.

BP is one of the world's most renowned oil and gas suppliers. It has been managing large projects for exploration, development and transportation in oil and gas fields in Azerbaijan since 1992.

BP and SOCAR have long-term cooperation in the oil and gas industry of Azerbaijan. BP Azerbaijan is the operator of ACG, Shah Deniz, Shallow Water Absheron Peninsula, Shafag-Asiman and Gobustan fields.

ACG is the largest oil and gas field in the Caspian Sea, covering more than 432 square kilometers. A contract for the development of ACG block of oil and gas fields was signed in 1994 for 30 years. Oil extraction from the field began in November 1997. The new agreement signed in 2017 provides for the development of the field until 2050.

The investments under the new agreement are estimated at $43 billion for the period up to 2050. The volume of oil production is planned to reach more than 500 million tons.

Proven oil reserves of ACG block of oil and gas fields are estimated at 1.2 billion tons, while gas reserves make up 350 billion cubic meters.

ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Equinor - 7.27 percent; ExxonMobil - 6.79 percent; TPAO - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.