Baku, Azerbaijan, April 19
By Leman Zeynalova – Trend:
Azerbaijan will be 5th largest biggest contributor to production in BP’s global portfolio in 2023, Robert Morris, senior analyst, Caspian upstream at Wood Mackenzie research and consulting company said, Trend reports citing the company’s website.
Morris was commenting on the decision to approve the $6 billion worth Azeri Central East (ACE) project, the next stage of development of the giant Azeri-Chirag-Gunahsli (ACG) field in the Azerbaijani sector of the Caspian Sea.
“Production at Azerbaijan's oil elephant may have peaked back in 2010, but with 3 billion barrels yet to be produced it is just halfway through its long life. The operator's core objective is managing that long decline to maximise recovery and remaining value. ACE is central to those plans, adding 100,000 barrels per day of production at peak in the mid-2020s,” said the expert.
Morris pointed out that BP and Azerbaijan are intimately connected: BP operates around 80% of the country’s production, and Azerbaijan will be the fifth largest biggest contributor to production in BP’s global portfolio when ACE achieves first oil in 2023.
“Complex logistics mean many projects in the Caspian cost more and take longer than elsewhere. However, BP's sharp delivery of Shah Deniz Phase Two, which started on schedule and under budget last year, gives us reason for optimism,” he added.
The Steering Committee for the development of the Azeri and Chirag fields and the Deep Water portion of the Gunashli (ACG) field (including SOCAR, BP, Chevron, INPEX, Equinor, ExxonMobil, TPAO, ITOCHU and ONGC Videsh) has announced the sanctioning of the Azeri Central East (ACE) project, the next stage of development of the giant ACG field in the Azerbaijan sector of the Caspian Sea.
The $6 billion development includes a new offshore platform and facilities designed to process up to 100,000 barrels of oil per day. The project is expected to achieve first production in 2023 and produce up to 300 million barrels over its lifetime.
The Azeri Central East (ACE) project is centred on a new 48-slot production, drilling and quarters platform located mid-way between the existing Central Azeri and East Azeri platforms in a water depth of approximately 140 metres. The project will also include new infield pipelines to transfer oil and gas from the ACE platform to the existing ACG Phase 2 oil and gas export pipelines for transportation to the onshore Sangachal Terminal.
In addition, there will be a water injection pipeline installed between the East Azeri and ACE platforms to supply injection water from the Central Azeri compression and water injection platform to the ACE facilities.
ACG participating interests are: BP (30.37 per cent), SOCAR (25.0 per cent), Chevron (9.57 per cent), INPEX (9.31 per cent), Equinor (7.27 per cent), ExxonMobil (6.79 per cent), TPAO (5.73 per cent), ITOCHU (3.65 per cent), ONGC Videsh Limited (OVL) (2.31 per cent).
---
Follow the author on Twitter: @Lyaman_Zeyn