BP in Azerbaijan
BP has been in Azerbaijan since 1992 and is the largest foreign investor in the country
BP operates two production sharing agreements (PSAs), which are under development - Azeri-Chirag-Gunashli (ACG) and Shah Deniz (SD) - and holds other exploration activity in the area. The contract areas of these PSAs cover about 1,300 km2 in total. In addition, BP leads the Baku-Tbilisi-Ceyhan (BTC) oil pipeline project and is the technical operator of the South Caucasus gas pipeline (SCP).
Azerbaijan is a core growth area and the strategy is to build a material sustainable business, with returns that will enhance our upstream performance. This strategy is being implemented through the phased development of ACG and SD, with oil and gas export through the BTC and SCP pipelines, respectively.
BP is the operator of the Azerbaijan International Operating Company and BP has a 35.8%, interest in the ACG oil fields in the Caspian Sea, offshore Azerbaijan.
SD is a major gas discovery with a staged development linked to market growth. BP is the operator of the Shah Deniz gas project with a 25.5% interest. Stage one production is supplying Azerbaijan, Georgia and Turkey, via the SCP gas pipeline.
BP is also the operator of the Shafag-Asiman PSA in the Azerbaijan sector of the Caspian Sea. Under the 30-year PSA, BP holds 50% interest while State Oil Company of Azerbaijan Republic (SOCAR) holds the remaining 50%. Seismic Survey on Shafag-Asiman is ongoing with target to complete in 2012.
BP Exploration and Production in Azerbaijan
Shah Deniz Full Field DevelopmentOperator: BP
BP Working Interest: 25.5%
Shah Deniz (SD) is a giant offshore gas field in the Caspian Sea. Shah Deniz Stage 1 (SD1) came online in December 2006.
Shah Deniz Full Field Development represents Stage 2 of the field’s development, as well as the expansion of the South Caucasus Pipeline. It will deliver an additional 16 billion m3 per annum (bcma) of gas and up to 100,000 barrels per day of condensate, tripling overall production from the field.
- New offshore platforms, constructed in Azerbaijan
- Up to 30 subsea wells
- Over 500 km of subsea pipelines, laid by a fleet of local vessels
- A major expansion of Sangachal Terminal
- Expansion of the 700 km South Caucasus Pipeline to Georgia and Turkey, to over 20 (bcma).
The new Shah Deniz gas volumes will be exported to Europe as well as to the existing markets in Georgia and Turkey.
On 25 October 2011, Shah Deniz and BOTAS Petroleum Pipeline Corporation signed key gas export agreements that provide a legal framework to regulate the transportation of the Shah Deniz gas through Turkey.
Chirag Oil ProjectOperator: BP
BP Working Interest: 35.8%
The Chirag Oil Project (COP) is an offshore development located in the Azerbaijan sector of the Caspian Sea, approximately 120 km southeast of Baku. The project consists of developing a new 48-slot drilling and processing platform in the Azeri, Chirag and Gunashli (ACG) oil fields.
The new platform will primarily enable additional targets to be drilled in the Pereriv and Balakhany reservoirs. The project will also allow a dedicated water flood into the Balakany reservoirs through the new platform; and water flood into the Pereriv reservoirs through two subsea water injection wells. The project builds on the existing programme of standardized facilities that have been successfully built over the last ten years.