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2019 full year results

Release date:
6 February 2020

ACG participating interests are: BP (30.37%), SOCAR (25.0%), Chevron (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh Limited (OVL) (2.31%).


BP Exploration (Caspian Sea) Limited is the operator on behalf of the Contractor Parties to the ACG Production Sharing Agreement.

In 2019, we spent about $567 million in operating expenditure and $1,476 million in capital expenditure on ACG activities.

In April 2019, the ACG partnership took a decision to commence the next stage of development of the ACG field with a $6 billion project which 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 incremental up to 300 million barrels of oil over its lifetime.  

In 2019, the project awarded the main fabrication, marine and subsea contracts and started construction activities in July. These activities continued to ramp up through the year. 

Currently, topsides and drilling rig fabrication and assembly are progressing in accordance with the plan at the Bibi-Heybat yard, jacket and pin pile fabrication is progressing ahead of schedule at the Heydar Aliyev Baku Deepwater Jackets Factory (BDJF) with the view to install the pin piles later this year, living quarters module fabrication is progressing ahead of schedule in Sweden,  subsea pipe coating qualification testing has commenced.




During the year, ACG continued to safely and reliably deliver stable production. Total ACG production for the full year was on average about 535,000 barrels per day (b/d) (more than 195 million barrels or 26 million tonnes in total) from the Chirag (41,000 b/d), Central Azeri (134,000 b/d), West Azeri (121,000 b/d), East Azeri (89,000 b/d), Deepwater Gunashli (96,000 b/d) and West Chirag (54,000 b/d) platforms.

At the end of 2019, 125 oil wells were producing, while 46 wells were used for water and seven for gas injection.


Drilling and completion 


In 2019, ACG completed 10 oil producer wells and one water injection well.


Associated gas


During the year, ACG delivered an average of 5.7 million cubic metres per day of ACG associated gas to SOCAR (2.1 billion cubic metres in total), primarily at the Sangachal Terminal but also to SOCAR’s Oil Rocks facility. The remainder of the associated gas produced was re-injected for reservoir pressure maintenance.

In 2019, oil and gas from ACG and Shah Deniz continued to flow via subsea pipelines to the Sangachal terminal.

The daily capacity of the terminal’s processing systems is currently 1.2 million barrels of crude oil and about 80 million standard cubic metres of Shah Deniz gas, while overall processing and export capacity for gas, including ACG associated gas is around 100 million standard cubic metres per day.

In 2019, the Sangachal terminal exported about 263 million barrels of oil. This included about 235 million barrels through Baku-Tbilisi-Ceyhan (BTC) and about 28 million barrels through the Western Route Export Pipeline (WREP).

Gas is exported via the South Caucasus Pipeline (SCP), the South Caucasus Pipeline expansion system and via SOCAR gas pipelines connecting the terminal’s gas processing facilities with Azerigas’s national grid system.

On average, more than 45 million standard cubic metres (about 1,600 million standard cubic feet) of Shah Deniz gas was exported from the terminal daily in 2019.

The BTC Co. shareholders are: BP (30.1%); AzBTC (25.00%); Chevron (8.90%); Equinor (8.71%); TPAO (6.53%); Eni (5.00%); Total (5.00%), ITOCHU (3.40%); INPEX (2.50%), ExxonMobil (2.50%) and ONGC (BTC) Limited (2.36%).


In 2019, BTC spent approximately $138 million in operating expenditure and about $44 million in capital expenditure.

Since the 1,768 km BTC pipeline became operational in June 2006 till the end of 2019, it carried a total of more than 3.35 billion barrels (more than 447 million tonnes) of crude oil loaded on 4,381 tankers and sent to world markets.

In 2019, BTC exported around 233 million barrels (about 31 million tonnes) of crude oil loaded on 296 tankers at Ceyhan.

The BTC pipeline currently carries mainly ACG crude oil and Shah Deniz condensate from Azerbaijan. In addition, other volumes of crude oil and condensate continue to be transported via BTC, including volumes from Turkmenistan, Russia and Kazakhstan.

Shah Deniz participating interests are: BP (operator – 28.8%), TPAO (19.0%), AzSD (10.0%), SGC Upstream (6.7%), PETRONAS (15.5%), LUKOIL (10.0%) and NICO (10.0%).


In 2019, Shah Deniz spent about $544 million in operating expenditure and $1.1 billion in capital expenditure, the majority of which was associated with the Shah Deniz 2 project.




During the year, the Shah Deniz field continued to provide deliveries of gas to markets in Azerbaijan (to SOCAR), Georgia (to GOGC and SOCAR), Turkey (to BOTAS) and to BTC Company in multiple locations. 

In 2019, the field produced around 16.8 billion standard cubic metres (bcm) of gas and 3.5 million tonnes (28.6 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms. 

Production from Shah Deniz Bravo has been ramping up since the first gas delivery at the end of July 2018.

The existing Shah Deniz facilities’ production capacity is currently over 56 million standard cubic metres of gas per day or more than 20 bcma.


Shah Deniz 2 project

In 2019, Shah Deniz 2 project achieved final acceptance of offshore and onshore facilities. The project team continued to support operations through the first year of production to ensure high operating efficiencies of the Shah Deniz 2 assets.

During the year the project continued to perform subsea construction activities, including installation of infrastructure to the deep-water flanks to support the next East South flank start-up in 2021. Delivery of subsea assets and installation activities using the subsea construction vessel Khankendi and the pipelay barge Israfil Huseynov will continue over the coming years to deliver plateau gas production.




In 2019, Shah Deniz Alpha platform rig was on warm stack and conducted rig maintenance and TAR in between. 

The Istiglal rig delivered one subsea well completion on the East South flank, two completions on the West South flank and two completions on the East North flank. The rig then drilled top holes of two East North flank wells. The Maersk Explorer rig drilled SDH01 well to its final depth, one top hole on the North flank and two top holes on the West South flank. The rig then drilled SDF03 well on the West South flank to its final depth and commenced drilling the lower section of SDF04 well.

The above two rigs have already drilled 17 wells in total, and completed 16 out of those, for Shah Deniz 2 production and subsequent ramp up (four wells on the North Flank, four wells on the West Flank, four wells on the East South Flank, two wells on the West South Flank and two wells on the East North flank, one well on the West South flank was drilled to its final depth and suspended). Drilling operations will continue to deliver all wells required to ramp up to plateau level.

The SCP Co. shareholders are: BP (28.8%), TPAO (19.0%), AzSCP (10.0%), SGC Midstream (6.7%), PETRONAS (15.5%), LUKOIL (10.0%) and NICO (10.0%).


In 2019, SCP spent about $48 million in operating expenditure and about $34 million in capital expenditure in total.

The SCP has been operational since late 2006, transporting Shah Deniz gas to Azerbaijan, Georgia and Turkey. The expanded section of the pipeline commenced commercial deliveries to Turkey in June 2018.

During 2019, the daily average throughput of SCP was 29 million cubic metres of gas per day.

The SCP has a dual operatorship with BP as the technical operator being responsible for construction and operation of the pipeline facilities and SOCAR Midstream Operations, as commercial operator, responsible for the commercial operations of the pipeline.

On the Shafag-Asiman offshore block, the first exploration well was spudded on 13 January 2020. The well is expected to take around nine months to drill. Following this, the well data will be analyzed and, if successful, an evaluation programme may be conducted to confirm the results.  

On D230, a 3D seismic acquisition programme commenced in December 2019. These activities are currently ongoing. It is expected that the programme will be completed in the 1st half of 2020.  This will be followed by the processing and interpretation of the acquired data. Based on the results of the seismic survey we will begin planning of the first exploration well in 2020.

In the Shallow Water Absheron Peninsula planning for the exploration wells drilling in the selected three prospective areas is ongoing with the view to commence drilling activities later this year once the upgrade of the rig selected to drill the first well is completed.

At the end of 2019, the number of BP’s Azerbaijani national employees was 2,534 including fixed-term employees. 

Since mid-2018, 90% of BP Azerbaijan’s professional staff has been nationals. Non-professional staff of BP in Azerbaijan is 100% nationalized.

BP will continue its efforts to optimize its learning and development programmes and will actively participate in public and private sector initiatives contributing to the development of the local talent market.

The success of projects in the Caspian region depends, in part, on the operators’ ability to create tangible benefits from these projects for the people of the region. To achieve this, BP and the co-venturers continue to implement major social investment projects, which include educational programmes, building skills and capabilities in local communities, improving access to social infrastructure in communities, supporting local enterprises through provision of access to finance and training, support for cultural legacy and sport, as well as technical assistance to public institutions.

In 2019, BP and the co-venturers in BP-operated joint ventures spent $3 million in Azerbaijan on social investment projects.

BP (on behalf of the co-venturers in the joint ventures that it operates) will continue their social investment initiatives in support of local capacity-building and enterprise development throughout Azerbaijan to assist the country in strengthening its economy. 

Some examples of such projects in Azerbaijan are:

  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting a programme aimed at enhancing employment opportunities for people with disabilities in Azerbaijan. The programme called “Enhancing employability skills for people with disabilities” aims to develop skills and capabilities of selected people with disabilities through trainings and other specialised activities. The project also provides psychological counselling sessions to enhance the participants’ self-confidence. The first phase of this project ended in January 2019 and it moved to Phase 2 in July. This new phase of the project involves up to 100 new people with disabilities and is designed to expand the training programme in order to further enhance employment opportunities for the participants. BP Azerbaijan developed a special work placement programme and provided an opportunity for selected 9 participants from Phase 1 of the project to engage in an international working environment practicing their new skills and learning from experienced BP staff. Currently, the project continues in Phase 2 with 105 participants in attendance.
  • The Enterprise Development Programme (EDP), initiated by BP (on behalf of the co-venturers in the joint ventures that it operates), is a multi-million-dollar initiative in support of local business development. The programme is part of the efforts to increase local content of contracts in Azerbaijan and contribute to the healthy and transparent development of the local economy. In 2019, 21 local companies graduated from the programme.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting secondary schools in enhancing IT skills teaching. As part of this 3-year initiative, a new curriculum for IT specialised secondary schools has been developed in cooperation with the Ministry of Education. In addition, 50 teachers representing 25 Baku schools have been were trained to pilot and effectively use the new curriculum. On the basis of the new curriculum, new teaching and learning materials including textbooks for the 10th and 11th grades have been developed.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is involved in the “Build your Future” project to support a large group of 11th grade students in their preparation for university admission exams. The participants in the project are selected from disadvantaged families. The project activities include two components – academic knowledge and social integration. In total, some 188 young people out of 207 participants in the past three academic years (91%) have been successful, meeting the requirements of the higher school entrance exams and becoming students. The project is currently ongoing with a new group of participants (115 participants) targeting the university exams of 2020. 
  • BP (on behalf of the co-venturers in the South Caucasus Pipeline Company) implemented a project to establish early intervention and pre-school services in 13 districts along the pipeline route and beyond - Hajigabul, Kurdamir, Agdash, Ujar, Yevlakh, Samukh, Goranboy, Shamkir, Tovuz, Agstafa, Agsu, Gobustan and Shirvan.  The project was implemented in 3 phases in 2016-2019 with successful completion in 2019.  
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting a livelihood generation project which initially covered 100 community members from the Yevlakh, Goranboy, Samukh and Shamkir districts by providing equipment, training and continuous consultancy in beekeeping and small farming. This project called “Sweet Gold” was then expanded to cover two more districts - Agstafa and Tovuz, along the BP-operated pipelines – This new phase is for three years - 2018-2020 aiming to benefit over 500 community members and to achieve the planting of over 60000 nectar trees for bee-breeding. To date over 45000 nectar trees have already been planted and over 400 new project beneficiaries have been selected.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting Baku Engineering University by purchasing materials for chemical experiments and installing new equipment in the 11 laboratories earlier established at that university by BP and co-venturers. In addition, the project scope includes the translation from English into Azerbaijani of learning materials for the Chemical Engineering Department. The project is expected to benefit more than 400 students every year.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting a new initiative which aims to establish a foundation “Course for Childhood Health, Education and Social Development (CHED)”. The project is designed to raise the quality of care for children with disabilities and their families by offering training opportunities for specialists from the health, education and social services sectors. A new training programme certified by Georgetown University (USA) has been developed for that purpose. 19 participants completed the first CHED course in 2019. The second course commenced at the end of 2019 with 18 new participants currently attending the programme.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) implemented the “School Support Project” in 2019. As part of the project, learning materials on teaching methodology for in-service and pre-service school teachers were published and presented to relevant institutions.  
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting a project to improve the capability of up to 60 child development specialists through provision of trainings in physiotherapy. These specialists are expected to work in total with up to 300 children with disabilities.  With another project BP and co-venturers are helping to improve the skills of 60 childcare specialists to raise the quality of services of a community-based childcare centre. 
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting “English for Engineers Project” which intends to enhance English language knowledge of teachers and students of the Azerbaijan State Oil and Industry University. The project helps educational capacity-building, as well as improves the university’s international co-operation. In 2019 90 teachers and 200 students were selected for the programme which currently continues.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) is supporting the transfer of international business education expertise to the country through bringing the internationally-recognised Adaptive Strategic Execution Programme to Azerbaijan, basing it at Baku’s ADA University. Overall six streams are planned within the duration of the project covering a total of up to 108 students. A total of 44 participants were trained in 2019 and four modules out of the planned six have been completed). The training programme of the project is certified by the Fuqua School of Business at Duke University (USA) and is based on a world-class business education curriculum developed by Duke Corporate Education (Duke CE), a leader in providing executive education globally. The project is designed to help meet the current market demand in executive education and challenges faced by local organizations in this area.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) commenced a social infrastructure development project in September 2019 to support local communities in Hajigabul and Kurdemir in getting access to improved infrastructure. As part of this project three kindergartens (one in Hajigabul and two in Kurdemir) are being renovated.
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) are implementing a project to support development of micro-entrepreneurial skills and capabilities of rural women and enhance their employment opportunities by setting up a Community Family Support Club in the Tovuz district. 
  • BP (on behalf of the co-venturers in the joint ventures that BP operates in Azerbaijan) are supporting a three-year educational project to strengthen data analytics research and training capacity in Azerbaijan. This will be achieved through establishing a competitive and sustainable dual Master of Science in Computer Science and Master of Science in Data Analytics (MSCS/DA) degree programme, as well as further developing the Centre for Data Analytics Research at ADA University.
  • BP (on behalf of the co-venturers in the ACG project) funded the publication of a research book on the development of the ACG field. The book was published as part of the ACG contract’s 25th anniversary celebrations. 

In addition, in 2019, BP alone spent $1.2 million on sponsorship projects in Azerbaijan. These included:

  • Translation from English into Azerbaijani and publication of 10 academic textbooks on sustainability and supply chain management; human resources management; media and mass communications; banking and financial markets, principles of marketing; fundamentals of management; political science; social sciences; case management; ethics and values in social work.  It is expected that this project will help raise the quality of teaching of these disciplines in higher educational institutions benefiting more than 17,000 students at 10 universities. 
  • BP’s ongoing support for the development of sport through its partnership with Azerbaijan’s National Olympic and Paralympic Committees. As part of this partnership, BP funds a series of development programmes and supports a group of national athletes. In 2016 BP extended its partnership agreement to support Azerbaijan’s national teams, both National Committees and a group of seven national athletes until the end of 2020. In November 2019, BP sponsored two events held by the National Paralympic Committee - the “Invincible” gala presentation and the 5th Children’s Paralympic sport games devoted to the 30th anniversary of the International Paralympic Committee.
  • BP organized an event to promote the engineering discipline among female students and build the awareness about the importance of gender diversity. The initiative, which also aimed to break stereotypes about who can be an engineer and reinforce a gender-equality mindset, was part of the 13th Azerbaijan International Education Exhibition held in Baku. 
  • BP sponsored the international conference on the “Role of Paris Agreement in Climate Change and Environment” held in Baku. The main goal of the conference was to determine the general directions in the field of environmental protection, environmental safety and efficient use of natural resources.
  • BP sponsored the publication of a new fundamental research book in English about Imadeddin Nesimi - one of Azerbaijan’s and the world’s great literary names. The book is a contribution to the 650th anniversary celebrations of Azerbaijan’s immortal poet and is one of the most extensive scientific publications about Nesimi in a Western language. The author of the research and the book is the well-known literary scholar Michael Reinhard Hess. The book presents all essential aspects of Imadeddin Nesimi´s life, the historical and intellectual background of his times, and the impact he has left behind through his work. The book has been presented to   the libraries and universities in Europe.
  • BP sponsored an international symposium on “Industrial commitments: archaeology and contribution to cultural heritage” and the second Republican Customs Forum: Foreign Trade Participants organized by the State Customs Committee of Azerbaijan. 
  • BP also sponsored the Azerbaijan Business Case Competition (ABCC) for university students, in which participant teams competed to solve real-life business problems using their knowledge in business disciplines from finance and marketing, to accounting and management. They presented their solutions to a panel of judges representing major businesses in Azerbaijan.

Further information: Tamam Bayatly at BP’s Press Office in Baku.

Telephone: (+994 12) 525 58 95