Wood Mackenzie: Azerbaijan to be 5th largest biggest contributor to production in BP’s global portfolio

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

Subscribe to Trend in Google News! Subscribe
Belgium's total COVID-19 infections exceed 3 mln
Belgium's total COVID-19 infections exceed 3 mln
Russia expands retaliatory list of EU representatives banned from entering country — MFA
Russia expands retaliatory list of EU representatives banned from entering country — MFA
Iran deal talks are adjourned until next week — EU
Iran deal talks are adjourned until next week — EU
Loading Bars
Latest
Belgium's total COVID-19 infections exceed 3 mln
Biden says he'll send troops to eastern Europe in ‘near term'
U.S. airlines cancel almost 5,000 flights ahead of Nor'easter
Argentina announces debt agreement with IMF
Canada's COVID-19 cases surpass 3 mln
Fake news, disinformation on COVID, is human rights violation: Pope Francis
Tunisia thwarts alleged terrorist attack targeting tourist areas
Turkey welcomes Kyrgyzstan-Tajikistan ceasefire
UN chief calls for observing Olympic Truce
UN thanks Azerbaijan for contributions to budget of organization
Residents of Bina settlement express gratitude to President Ilham Aliyev and First Lady Mehriban Aliyeva for establishment of Training and Service Complex (PHOTO/VIDEO)
Russia expands retaliatory list of EU representatives banned from entering country — MFA
Ten injured after bridge collapses in U.S. city Pittsburgh
Iran deal talks are adjourned until next week — EU
Erdogan to visit Ukraine on Feb 3 as part of mediation efforts
Germany's exports to UK continue to decline in 2021: Destatis
Azerbaijan's Agency for State Support to NGOs, Turkey's Ministry of Interior sign memorandum of co-op (PHOTO)
Embassy of India organised Blood Donation Drive (PHOTO)
Tractor hits mine in Azerbaijan's Fuzuli district
Uzbek Central Bank notes growth in volume of loans issued to individuals
Uzbekistan shares data on loan portfolio of its banks for 2021
Russian veterans urge to check Union of Armenians in Russia regarding film about Garegin Nzhdeh
Azerbaijan's Nakhchivan reveals revenue data from communication and information services
Remains of Armenian soldier found in Azerbaijan's Fuzuli district
GDP of Azerbaijan's Nakhchivan growing
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 3,564 more COVID-19 cases, 1,004 recoveries
Russia allocates credit line for construction of Iran`s Sirik power plant - minister
National Bank of Georgia to adopt regulations for cryptocurrency trading platforms
Azerbaijan’s Nakhchivan discloses loans issued to population
Azerbaijan Entrepreneurship Development Fund to help businesses create corporate governance mechanisms
German RBC consulting company talks achievements in work on Azerbaijani market
Kazakh president calls on Nur Otan party members to focus on some priorities
Iran Oil Industry Pension Fund eyes to invest in oil and energy sectors
Uzbek UzAuto Motors to generate higher revenue in 2022
Azerbaijan’s Buta Airways becomes most active passenger carrier in Georgia
Kazakhstan-based Nostrum unveils oil production indicators for 2021
Turkmenistan assisting in delivery of Turkish humanitarian aid to Afghanistan
Azerbaijan to increase number of bus routes to Karabakh (Exclusive)
Azerbaijan discloses number of passengers of regular bus trips to liberated Shusha, Aghdam
President Ilham Aliyev congratulates president of Kazakhstan on election as chairman of Nur Otan party
Uzbekistan proposes India to develop co-op in healthcare, education and IT
Azerbaijani President Ilham Aliyev signs order on 30th anniversary of Khojaly genocide
Israel signs deal with Novavax for COVID vaccine
Azerbaijan's ANAMA builds new mobile field camp in Aghdam district (PHOTO)
TBC Capital shares data on mortgage loans issuance in Georgia
Turkmen Commodity Exchange discloses data on imports from East Asian countries
SOFAZ places €1 billion deposit with Central Bank of Turkey
Iran seeks to prevent import of luxury goods
India & 5 Central Asian Countries To Form Joint Working Group On Afghanistan
Azerbaijan's foreign trade turnover notably up in 2021
Azerbaijani deputy PM to attend opening ceremony of Olympic Winter Games in Beijing
Uzbekistan sees growth in agricultural production
India for ‘greater urgency’ in trade negotiations with EU, says EAM Jaishankar
Georgia increases textile exports to Turkey
Romanian energy minister to visit Azerbaijan
Azerbaijan records decline in foreign currency sales - chairman of CBA
Georgia’s imports of oil products from Kazakhstan plummet
Turkmenistan to increase electricity supply to Afghanistan
Central Bank of Azerbaijan names allocations made to support national currency rate in 2015
Azerbaijan to build astronomical station in Karabakh region
Use of cryptocurrency not endangering stability of Azerbaijani national currency - CBA
Central Bank of Azerbaijan plans to sign agreement with int’l consulting company
UNIDO to offer expertise for Turkmen energy sector
Central Bank of Azerbaijan names priorities for development of insurance sector
Our first president made huge contribution to strengthening of state - President Tokayev
Nur Otan party should be led by person who was nominated and supported by it in presidential election - Nazarbayev
CBA expects inflation to return to target range Azerbaijan in 2023
Devotion to interests of country has particular importance in politics - Kazakh president
Iran working on connecting of Gilan ports to national railway network
Share of electricity in Azerbaijan’s total exports down
Siraf Pars Port in Iran becomes country's major liquid gas exporter
Global food prices rise to highest level over past decade - FAO (Exclusive)
Decree regulating process of charity on part of big business to be issues in Kazakhstan
French 2021 economic growth strongest in 52 years at 7%
Kazakh-Russian copper deposit dev't project approved by Russia's Main Department of State Expertise
Azerbaijan reveals petroleum coke, oil bitumen exports
Buta Airways to resume flights to Mineralnye Vody in February
Turkmenistan sees decline in trade turnover with Azerbaijan
We'll return to issue of expediency of my further chairmanship in Nur Otan after some time - Tokayev
Representative body of Kazakhstan's Nur Otan party updated by 55%
Azerbaijan unveils volume of transactions via Apple Pay
Public councils created under Nur Otan party should become effective platform - Tokayev
Azerbaijani Central Bank not planning to create new legislative base to regulate digital banks
Central Bank discloses Azerbaijan's possible current account balance in 2022
Potential of Nur Otan party wasn't fully utilized at critical moment - Tokayev
Currency rate of Azerbaijani manat to be stable in 2022 - CBA
Military reforms, increasing of combat capability of troops to be priority in 2022 – Azerbaijan MoD
Dariga Nazarbayeva resigned from Kazakhstan Nur Otan party
Azerbaijan reveals Top 10 oil importers
Azerbaijani CBA forecasts increase in demand for foreign currency
Rothschild & Co eyes creation of special financial zones in Georgia
Azerbaijan increases share of natural gas in exports
Annual inflation to be above target range in Azerbaijan - CBA
Nur Otan Party needs to renew itself - Tokayev
Turkmen enterprise eyes to expand tomato production
Non-OPEC won’t return to pre-COVID levels of oil output
Azerbaijan defense minister expresses condolences to Pakistan
Additional barrels from OPEC+ back to market in 2022 to be less than headline figure
Azerbaijan continues restoration and construction work on its liberated lands
All news