Joint Venture Partners Ink Commercial Deals to Develop Gas Reserves at Azerbaijan’s ACG Field

Monday, September 23, 2024

The international joint venture (JV) partners, led by BP as the operator, have signed commercial agreements for the development of gas reserves at the giant Azeri-Chirag-Gunashli (ACG) gas field offshore Azerbaijan.

After the State Oil Company of the Republic of Azerbaijan (SOCAR) and BP, operator of the JV, MOL is the third largest shareholder in the giant Azeri-Chirag-Deepwater Gunashli (ACG) field, where non-associated gas (NAG) reservoirs were identified beneath and above the oil producing reservoirs. 

The partners have now agreed on the development and commercial exploitation of these reserves.

MOL has also signed a memorandum of understanding (MoU) with SOCAR to evaluate further potential cooperation opportunities in the area of hydrocarbon exploration in Azerbaijan.

The commercial agreements amend the existing ACG production sharing agreement (PSA) framework, enabling the parties to progress the exploration, appraisal, development of and production from the gas reservoirs of the ACG field.

ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (112 billion cubic meters) in place.

Drilling of the initial producing well has already started from the West Chirag Platform, with first gas expected in 2025. The well is important as it will deliver appraisal through production which is expected to underpin future development plans.

In addition, MOL Group Chairman and CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf signed an MoU in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region.

Under the Memorandum of Understanding, MOL Group expressed intention to contribute their experience, technical and commercial knowledge, and financial resources to further develop Azerbaijan’s hydrocarbon extraction. 

“Today is an important milestone for MOL Group as after years of developing and producing oil fields in Azerbaijan, we extend our footprint by entering into gas reservoir development. This is thanks to the outstanding cooperation with SOCAR and the partners of the ACG project,” said Zsolt Hernádi, Chairman and CEO of the MOL Group.

The ACG field joint venture include BP (30.37%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGCVidesh (2.31%).

Categories: Industry News Activity Europe Asia Oil and Gas

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

Fugro Expands Geotechnical Testing Capabilities in Indonesia

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com