In a landmark development for Azerbaijan’s energy landscape, the Azeri-Chirag-Gunashli (ACG) field has commenced its first commercial non-associated gas (NAG) production. This initiative signifies a pivotal moment, marking the initial gas output from one of the world’s most extensive oil developments, located offshore Azerbaijan in the Caspian Sea.
This milestone in ACG field ushers in a new era for an asset that has been a cornerstone of Azerbaijan’s energy sector for nearly three decades. Previously known primarily for its substantial oil output, the ACG field is now diversifying its operations with the introduction of natural gas extraction.
The first gas is being produced from a well drilled from the West Chirag platform. This operation is anticipated to yield critical reservoir and flow data, essential for evaluating the broader gas resource base within ACG and informing future development strategies. Industry estimates place the field’s non-associated gas resources at approximately 4 trillion cubic feet (Tcf) of recoverable reserves, with a potential upside reaching up to 6 Tcf. This underscores the significant untapped potential in the region.
“This is a big day for Azerbaijan and for the ACG co-venturers,” said Gio Cristofoli, Regional President for Azerbaijan, Georgia and Türkiye at bp.
“ACG has a long and successful history and now, nearly three decades into oil production, the field continues to hold potential to deliver value for the nation and its investors as it starts this new chapter,” he added.
The initial well was expertly drilled into two target reservoirs situated beneath the existing oil-producing zones of ACG. This exploration confirmed the presence of gas resources in the Qirmaki Upper Sand reservoir and identified high-pressure gas in the deeper Qirmaki Lower Sand reservoir, which will be the focus of the initial testing and production activities. The produced gas and condensate will be efficiently transported to the Sangachal Terminal by utilizing the existing ACG infrastructure. This integration allows the project to leverage well-established offshore facilities and export systems, minimizing logistical complexities and enhancing operational efficiency. The development of ACG field is a testament to strategic planning and long-term vision.
“The project contributes to Azerbaijan’s plans to increase energy supplies to Europe while supporting the country’s energy transition efforts,” further added Cristofoli.
bp operates the ACG field on behalf of a consortium of partners, including SOCAR, MOL, INPEX, ExxonMobil, TPAO, and ONGC Videsh. The field’s oil production commenced in 1997, establishing it as a vital component of Azerbaijan’s energy sector for decades.
