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bp Exploration (Caspian Sea) Limited is the operator on behalf of the Contractor Parties to the ACG Production Sharing Agreement.
In 2020, we spent more than $531 million in operating expenditure and more than $1,817 million in capital expenditure on ACG activities.
Despite the challenges and restrictions caused by the pandemic the Azeri Central East (ACE) project remained remarkably resilient during the year along with other bp activities.
The detailed engineering works were substantially completed by the end of the year, and at least 10 major packages were shipped to Baku in the fourth quarter, complimenting the multiple deliveries of plate, piping and other bulk materials shipped earlier in the year.
Fabrication activities on the topsides and drilling facilities for the ACE platform continued at the fabrication yard in Bibi-Heybat. These included the lifting of the cellar deck sections on to the skid way, the placement of the first major items of equipment into position, the ramp-up of piping along with the weather deck panel fabrication, the arrival of the drilling derrick at the yard and the commencement of fabrication and assembly of the drilling modules on site.
At the Heydar Aliyev Baku Deepwater Jackets factory (BDJF) the pin piles were completed, successfully loaded out, driven into the platform location and safely installed at the seabed ready to receive the platform jacket. The jacket fabrication continued with the first sections now out on the skid way. Fabrication activities on the subsea structures also commenced in 2020.
During the year, the project progressed with the offshore installation work associated with the produced water management on the Central Azeri platform and the preparation for work on East Azeri to allow the ACE platform to draw power from the Azeri field optimising power generation across the assets. At the Sangachal terminal the design for the onshore control room was close to completion at the end of 2020 to allow for the planned installation in 2021.
Overall, the engineering and procurement works remain on track to support the first production from the ACE project in 2023, with the larger equipment now moving from the suppliers into Azerbaijan.
Production
During the year, ACG continued to safely and reliably deliver stable production. Total ACG production for the full year was on average about 477,000 barrels per day (b/d) (about 175 million barrels or 23.6 million tonnes in total) from the Chirag (34,900 b/d), Central Azeri (113,200 b/d), West Azeri (118,900 b/d), East Azeri (64,200 b/d), Deepwater Gunashli (95,400 b/d) and West Chirag (50,400 b/d) platforms.
At the end of 2020, 127 oil wells were producing, while 45 wells were used for water and eight for gas injection.
Drilling and completion
In 2020, ACG completed 11 oil producer and 2 injector wells.
Associated gas
During the year, ACG delivered an average of 6 million cubic metres per day of ACG associated gas to SOCAR (2.2 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 2020, BTC spent about $111 million in operating expenditure and about $29 million in capital expenditure.
Since the 1,768 km BTC pipeline became operational in June 2006 till the end of 2020, it carried a total of 3.57 billion barrels (more than 475 million tonnes) of crude oil loaded on 4,659 tankers and sent to world markets.
In 2020, BTC exported around 211 million barrels (more than 27.8 million tonnes) of crude oil loaded on 278 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.
In 2020, Shah Deniz spent more than $1 billion in operating expenditure and $942 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project.
Production
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.
On 31 December, Shah Deniz celebrated a significant achievement by commencing first ever commercial gas deliveries to European markets via the newly-completed Southern Gas Corridor (SGC) pipeline system. The Shah Deniz field is the starting point of SGC and the commencement of gas deliveries to Europe from Shah Deniz marks the full integration of the entire SGC gas value chain, stretching 3,500 kilometres from Azerbaijan to Europe. With this important achievement Shah Deniz represents a new source of energy supply for Europe diversifying its energy market and strengthening its energy security.
In 2020, the field produced around 18.1 billion standard cubic metres (bcm) of gas and 3.6 million tonnes (29 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms.
The existing Shah Deniz facilities’ production capacity is currently over 56 million standard cubic metres of gas per day or more than 20 bcma.
In 2020, the Shah Deniz 2 project achieved major milestones in support of the gas production start-up from the East South Flank. The pipelay barge Israfil Huseynov safely completed the mechanical installation of two deep-water flowlines with the length of 18.3 km each. Flowline termination assemblies and other adjacent subsea infrastructure were successfully installed using the subsea construction vessel Khankendi.
The start-up of the deep-water East South Flank (at 540m water depth) is planned for the second quarter of 2021, following completion of offshore construction and commissioning. The start-up of the two remaining deep-water flanks (West South and East North) is planned for future years and will support plateau rates of gas production.
Drilling
In 2020, the Shah Deniz Alpha platform rig was on warm stack.
The Istiglal rig commenced the SDF03 subsea completion operations. The Maersk Explorer suspended the SDF05 well and commenced the SDH03 lower section drilling.
The above two rigs have already drilled 20 wells in total, and completed 16 out of those, for Shah Deniz 2 production and subsequent ramp-up. The completed wells include 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. Two wells on the West South flank were drilled to final depth and suspended. Drilling operations will continue to deliver all wells required to ramp up to plateau level.
In 2020, SCP spent $47 million in operating expenditure and $13 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 and to Europe in December 2020.
During 2020, the daily average throughput of SCP was 33.8 million cubic metres of gas per day.
Tamam Bayatly at bp’s Press Office in Baku.
Telephone: (+994 12) 525 58 95