BP starts first commercial free gas production at ACG field

BP has announced the start of first commercial free natural gas production operations at the Azeri-Chirag-Gunashli (ACG) field complex in Azerbaijan’s sector of the Caspian Sea.

BP, operator of the ACG project on behalf of partners SOCAR, MOL, INPEX, ExxonMobil, TPAO and ONGC Videsh, said the first free gas well drilled from the West Chirag platform marks a major step towards unlocking the field’s substantial gas resources.

According to BP, ACG’s recoverable free gas resources are estimated at around 4 trillion cubic feet, with potential to increase to as much as 6 trillion cubic feet.

“Today is a very important day for Azerbaijan and the ACG partners. After nearly 30 years of oil production, ACG is opening a new chapter in its history,” BP’s regional president for Azerbaijan, Georgia and Turkey, Gio Cristofoli, said.

He said the start of gas production would transform ACG into an integrated oil and gas field, contribute to Azerbaijan’s plans to increase energy supplies to Europe and support the country’s energy transition efforts.

The first gas well targeted two priority gas-bearing formations, the Upper Kirmaky Sandy Suite and the Lower Kirmaky Sandy Suite. The well confirmed gas resources in the upper formation and discovered high-pressure gas reserves in the lower formation.

Gas and condensate produced from the well will be transported to the Sangachal terminal through existing ACG infrastructure.

An amendment to the ACG production sharing agreement allowing exploration, appraisal, development and production of free gas resources was announced in September 2024 and will remain in force until the expiry of the PSA in 2049.

BP said the project has the potential to attract billions of dollars in investment over the next 23 years.

The ACG free gas project partners hold the following interests: BP (operator) 30.37%, SOCAR 35.3%, MOL 9.57%, INPEX 9.31%, ExxonMobil 6.79%, TPAO 5.73% and ONGC Videsh 2.92%.

N. Tebrizli