Azerbaijan Expects to Start Gas Production from Deep Layers of ACG Field Block in 2024 – Ilham Aliyev
Gas production from deep-seated reservoirs (deep-gas) of the Azeri-Chirag-Guneshli (ACG) block of fields is planned by the end of 2024, Azerbaijani President Ilham Aliyev said.
“If everything goes according to our plan, then by the end of next year we will have the first gas production (from deep-seated layers of the ACG-IF-Az block of fields),” Aliyev said, speaking at the opening ceremony of the 28th International Oil and Gas Exhibition on Wednesday. and Gas of the Caspian” and the 11th Caspian International Exhibition “Energy and Green Energy” – Caspian Power.
Aliyev added that Baku hopes “in the near future, even I would say very soon” to “hear good news” about the start of gas production from the Absheron field.
As reported, deep-gas reserves at ACG are currently projected at 300 billion cubic meters.
The contract for the development of the Azeri, Chirag and deepwater Gunashli fields was signed on September 20, 1994 and entered into force on December 12 of the same year. This agreement expires in 2024. However, on September 14, 2017, a new contract for the development of the ACG block, calculated until 2050, was signed in Baku.
Under the new contract, the share of British BP (project operator) is 30.37%, SOCAR (25%), Hungarian MOL (9.57%), American ExxonMobil (6.79%), Indian ONGC (2.31%), Japanese Inpex Corp. (9.31%) and ITOCHU Oil (3.65%), Norwegian Equinor (7.27%), Turkish TPAO (5.73%).
Investments under the new agreement are estimated at $43 billion for the period up to 2050. The volume of oil production is planned to be more than 500 million tons.
ACG is currently the largest oil field in Azerbaijan, it provides 2/3 of the country’s oil production.
The Absheron field is being developed by the Joint Absheron Petroleum Operating Company (JOCAP), established by SOCAR Absheron (50%) and TOTAL E&P Absheron (50%). The contract was signed for a period of 30 years. The contract area is 747 sq. km.
The Absheron block is located 100 km from Baku at a depth of 500 meters. In 2019, SOCAR and TOTAL completed drilling of the production and appraisal well “ABD-001” with a depth of 7411 meters at the Absheron field. The field’s reserves amount to 350-360 billion cubic meters of gas and 100 million tons of condensate, and its development will be carried out in stages.
At the first stage, the volume of production will be 1.5 billion cubic meters per year. At its peak, the project can produce about 5 billion cubic meters of gas per year. The field will also produce about 10,000 barrels of condensate daily.
