BP Launches Gas Production at ACG Field in Azerbaijan

BP has commenced non-associated gas production at its Azeri-Chirag-Guneshli (ACG) offshore asset in Azerbaijan, marking a significant shift for the field, which has primarily focused on oil operations for three decades. The ACG field holds an estimated 113 billion cubic metres (Bcm) of recoverable gas reserves, with potential upside to 170 Bcm. The initial gas well was drilled from the existing West Chirag oil production platform into deep formations below the oil reservoirs, targeting two priority gas reservoirs: the shallower Qirmaki Upper Sand and the deeper Qirmaki Lower Sand. The well confirmed gas resources in the Qirmaki Upper Sand and encountered high-pressure gas in the Qirmaki Lower Sand, with initial operations focused on testing the latter. BP stated that this well provides critical reservoir and flow data to support appraisal and future full-field gas development, positioning ACG as an integrated oil and gas asset that contributes to Azerbaijan’s plans to increase energy supplies to Europe.

Potential BP Takeover of Babek Gas Field

Authorities in Baku are seeking to finalize a deal for BP to take over operatorship of the Babek gas field in the Caspian Sea, currently held by Umid Babek Operating Company (UBOC), with Socar holding an 80% stake and UK-listed Noble Upstream holding 20%. However, a BP spokesperson confirmed that the plan is not scheduled to be finalized during the ongoing energy industry event in Baku. The Babek field, thought to belong to a single geological structure with the neighboring Umid field (split by a mud volcano), lies in deeper waters (350-600 metres) compared to Umid’s shallow waters. An UBOC executive noted that BP’s experience in deepwater subsea wells and infrastructure development is relevant, as Socar cancelled an initial plan to drill a first exploration well on Babek in 2023. Energy consultant Ilham Shaban highlighted that Babek has been barely explored, requiring 3D seismic data and at least two exploration wells to depths of 7000 metres to confirm commercial reserves. Socar geologists estimated Umid’s reserves at 200 Bcm when discovered in 2010, and assume Babek, which is larger in area, could hold up to 400 Bcm.