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2021 full year results

Release date:
10 February 2022

ACG participating interests are: bp (30.37%), SOCAR (25.0%), MOL (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 2021, we spent about $533 million in operating expenditure and $1,660 million in capital expenditure on ACG activities.


During the year, the Azeri Central East (ACE) project progressed according to the plan along with the other bp-operated activities.


The final major equipment packages were delivered to Baku at the end of the year completing the shipment of all equipment required for the project.


Fabrication activities on the topsides and drilling facilities continued at the fabrication yard in Bibi-Heybat. This included progressing the pipe erection and hydrotesting, cable pulling and testing. All modules of the living quarters were successfully installed on the topsides followed by the commencement of integration and internal hook-up activities. In addition, the upper deck panel was installed on the topsides, the helideck was lifted and installed on the living quarters. The topsides and the drilling module mechanical completion handovers progressed as planned. The drilling module commissioning at grade has already commenced and will continue in 2022 ahead of the jack and skid operation.


At the Heydar Aliyev Baku Deepwater Jackets factory (BDJF), the jacket fabrication continued with the final roll-up of the leg frames completed and assembly of the jacket towers commenced. The pipelay barge ‘Israfil Huseynov’ started the pipelay of the ACE oil and gas lines.


The  offshore installation works associated with the spare power scope on the East Azeri platform also progressed during the year.


At the end of the year, the ACE project reached the 65% progress milestone. The project construction activities are currently at peak and involve about 5,500 people across Baku, Europe and the UK, with the majority of them being Azerbaijani nationals.


All engineering, procurement and fabrication works remain on track to support first production from the ACE project in 2023.




During the year, ACG continued to safely and reliably deliver stable production. Total ACG production for the full year was on average about 458,000 barrels per day (b/d) (about 167 million barrels or 23 million tonnes in total) from the Chirag (27,000 b/d), Central Azeri (109,000 b/d), West Azeri (116,000 b/d), East Azeri (76,000 b/d), Deepwater Gunashli (86,000 b/d) and West Chirag (44,000 b/d) platforms.


On 18 September 2021, the ACG field reached 4 billion barrels of total oil production since start.


As part of the ACG annual work programme, two planned maintenance programmes (turnaround - TAR) were successfully implemented on the ACG platforms in 2021 – on West Azeri in the second quarter and on Chirag in the third quarter.


At the end of 2021, 135 oil wells were producing, while 29 were used for water and eight for gas injection.

Drilling and completion

In 2021, ACG completed 10 oil producer and four water injector wells.

Associated gas

During the year, ACG delivered an average of around 9 million cubic metres per day of ACG associated gas to the state of Azerbaijan (3 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 2021, 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 condensate, and about 81 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 2021, the Sangachal terminal exported about 231 million barrels of oil and condensate. This included about 200 million barrels through Baku-Tbilisi-Ceyhan (BTC) and around 31 million barrels through the Western Route Export Pipeline (WREP).


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


On average, around 61 million standard cubic metres (about 2,166 million standard cubic feet) of Shah Deniz gas was sent from the terminal daily during the year of 2021.

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


In 2021, BTC spent more than $119 million in operating expenditure and more than $34 million in capital expenditure.


On 12 December 2021, BTC reached a significant milestone by achieving 500 million tonnes of oil export in total from the Sangachal terminal near Baku across Azerbaijan, Georgia and Turkey to Ceyhan.


Since the 1,768 km BTC pipeline became operational in June 2006 till the end of 2021, it carried a total of 3.77 billion barrels (more than 502 million tonnes) of crude oil loaded on 4,939 tankers and sent to world markets.


In 2021, around 200 million barrels (about 26.4 million tonnes) of BTC-exported crude oil was lifted at Ceyhan loaded on 280 tankers.


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 – 28.83%), TPAO (19.0%), PETRONAS (15.5%), AzSD (10.0%), LUKOIL (10.0%), NICO (10.0%) and SGC Upstream (6.67%).


In 2021, Shah Deniz spent more than $2 billion in operating expenditure and around $680 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project.


In 2021, Shah Deniz celebrated the 25th anniversary since the signing of the Shah Deniz Production Sharing Agreement (PSA). The PSA was signed on 4 June 1996 between SOCAR and a consortium of foreign companies. It was ratified by the Milli Majlis and became effective on 17 October the same year. The project is the second after ACG largest foreign direct investment made in Azerbaijan and as such it has further strengthened the country’s economy. The Shah Deniz 25th anniversary marked an important milestone in the new history of Azerbaijan’s oil and gas industry.



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


In 2021, the field produced around 23 billion standard cubic metres (bscm) of gas and more than 4 million tonnes (around 34 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 about 72 million standard cubic metres of gas per day or more than 26 bcma.

The East South flank started up safely in the second quarter of 2021 and later in the year the flank reached its full production rates. As a result, in July 2021, the daily production rates of the Shah Deniz Bravo platform reached the Shah Deniz Alpha rates for the first time.


On the West South flank, the pipelay barge Israfil Huseynov completed the subsea pipeline construction activities. The scope was delivered ahead of schedule with the barge achieving its best ever performance and highest productivity. This allowed to commence subsea pipelaying activities on the East North flank in 2021, originally planned for the second quarter of 2022.


Overall, all West South flank subsea installation activities are progressing on schedule for the production start-up planned for the middle of 2022.


In 2021, the Shah Deniz 2 project also started up production from the 5th well on the North flank. This marked the first in-fill well tie-in to a live subsea operating manifold in the Caspian. The entire activity was completed safely, without any interruption to the existing producing wells on the flank.




In 2021, the Shah Deniz Alpha platform rig was on warm stack.


The Istiglal and Maersk Explorer rigs have already drilled 21 wells in total and completed 19 out of those for the Shah Deniz 2 production and subsequent ramp-up. The completed wells include five wells on the North flank, four wells on the West flank, four wells on the East South flank, four wells on the West South flank and two wells on the East North flank. One well on the West South flank and one well on the East North flank were drilled to the final depth and suspended.

The SCP Co. shareholders are: bp (28.83%), TPAO (19.0%), PETRONAS (15.5%), AzSCP (10.0%), NICO (10.0%), LUKOIL (10.0%) and SGC Midstream (6.67%).


In 2021, the SCP spent around $54 million in operating expenditure and more than $12 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 2021, the daily average export throughput of the SCP was 48.5 million cubic metres of gas per day.


On 1 August 2021, the transition of the technical operatorship of the South Caucasus Pipeline Company (SCPC) from BP Exploration (Shah Deniz) Limited to SOCAR Midstream Operations LLC was finalized. The transition process which started in March 2020 was successfully completed in July 2021. Despite the challenges caused by COVID-19, bp and SOCAR worked in close collaboration to effectively implement all the aspects of the process.


The transfer of the technical operatorship was carried out in fulfilment of the obligations undertaken in the revised SCPC Pipeline Owners’ Agreement, signed in December 2013 as part of the Final Investment Decision on the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects.

On the Shafag-Asiman offshore block, the drilling of the first exploration well was completed in March 2021 to the base of the Fasila reservoir to a depth of 7,189 metres.
The well encountered gas condensate resource in some of the penetrated reservoirs. Post-well analysis of the data received during the drilling is currently ongoing. This analysis is required in order to evaluate the hydrocarbon discovery and plan the next stage of exploration activities.


In the Shallow Water Absheron Peninsula (SWAP) area, the drilling of the first exploration well in the North Khali prospective area was completed in December 2021. The well was abandoned as per the original design and plan and the well results are currently being analyzed. The second exploration well was spudded on 11 December 2021 in the Bibi-Heybat area. Drilling activities are currently ongoing at the depth of around 2,470 metres. The spud of the third exploration well is planned for this year.  

At the end of 2021, the number of bp’s Azerbaijani national employees was 2,266 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 its 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 2021, bp and its co-venturers in the bp-operated joint ventures spent more than $2.2 million in Azerbaijan on social investment projects.


bp (on behalf of its 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:

  • The Enterprise Development Programme (EDP) initiated by bp (on behalf of its co-venturers in the joint ventures that it operates). This a multi-million-dollar initiative in support of local business development. The programme is part of the efforts to increase the local content of contracts in Azerbaijan and contribute to the healthy and transparent development of the local economy. During 2021, the programme continued its activities by providing financial training for the regional entrepreneurs representing 25 companies from Baku, Ganja, Shamkir, Yevlakh and Tovuz, as well as conducting various training sessions for a group of selected companies. The programme also continued to support capacity development of local organizations. This included the preparation of the capability development plans for a total of 23 vocational education and training centres operating under the Ministry of Education and the Ministry of Labour and Social Protection of Population of Azerbaijan, as well as for the AZERSU Training and Innovation Centre.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) has been supporting for five years a large group of 11th grade students in their efforts to prepare for higher education. The participants in the project called ‘Build your Future’ are selected from disadvantaged families. The project activities include two components – academic knowledge and social integration. In total, some 334 young people out of 389 participants in the past five academic years (86%) have been successful by meeting the requirements of the higher school entrance exams and becoming students. In 2021, out of 74 project participants who received tutorial classes, 52 participants were admitted to the local universities. Based on the results and overall success of this initiative, bp and its co-venturers decided to continue the project into the 2021-2022 academic year.
  • bp (on behalf of its 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 recognized Adaptive Strategic Execution Programme to Azerbaijan, basing it at Baku’s ADA University. 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, a leader in providing executive education globally. The project is designed to help meet the current market demand in executive education. Overall, six streams are planned for the duration of the project covering a total of up to 108 students. Of these, two streams with a total of 44 participants were completed in May 2020. The training sessions for the next two streams with a total of 39 participants commenced in October 2021.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting a three-year educational project to strengthen data analytics research and training capacity in Azerbaijan. This is 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. A total of 20 students, who were selected for the first cohort, completed the spring semester at ADA University and left for the US to continue their studies at the George Washington University. The second cohort consisting of 19 students started its academic year in the second half of 2021.
  • bp (on behalf of its co-venturers in the joint ventures that it operates) launched a new social investment initiative aiming to support distant learning in Azerbaijan. The project is expected to benefit up to 10,000 school children aged 13 to 17 through developing the extra-curricular educational content in career planning, financial literacy and entrepreneurship and delivering it via public TV channels and digital platforms. As part of the project, the videos dedicated to the career path and growth topics were developed and aired via a public TV channel. The extra-curricular programme on career planning and work readiness, financial literacy and entrepreneurship education were developed for teaching at 30 pilot schools throughout the country.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) successfully completed a social project aimed to help local professionals who treat children with disabilities and developmental delays. The project built on the partnership with the US-based Georgetown University to provide training for local professionals aiming to enhance the in-country network of child development services. As part of the project, over 100 local specialists and psychology and social science students were provided with a series of webinars on child health, education and social development.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) successfully completed a project aimed to empower school students to make thoughtful decisions in their career choice. A total of 508 school students from 124 schools attended the `career guidance` tests and were provided with the consultations on test results and soft skills trainings to improve communication skills and analytical thinking. The project also surveyed more than 1,000 school and university students, as well as over 600 parents aiming to develop a research paper about career path choice of school students and the factors affecting it.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting the ABB Tech Academy initiative by sponsoring the training of 200 Azerbaijani citizens jointly with ABB. The project aims to train the new generation of digital workforce for the country. A total of 43 people whose tuition fees were funded by bp and its coventurers, completed the programme and 20 new participants have recently enrolled to it.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting a social investment project aiming to improve English language skills of English teachers and students of the Azerbaijan State Oil and Industry University. In total, over 3,000 students and teachers at the university will benefit from this programme. A total of 74 teachers completed the language training in 2021.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is implementing a social project to support youth entrepreneurship in rural areas. This is achieved through application of a youth business incubation model for 30 selected young people from the Samukh, Goranboy and Shamkir districts. The project includes provision of training and equipment for the project beneficiaries to help them start their own businesses. During 2021, the project participants completed the training and were provided with required equipment and means to help them start their businesses.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting a project aiming to empower local autism specialists by enabling them to access international best practices. The project includes support for the development of 60 local specialists using internationally approved training programmes, translation of internationally available learning and teaching materials, as well as public outreach activities. In addition, the project supports a group of autistic persons with preparation of individual self-development and business plans to help enhance their employment opportunities. In 2021, a total of 16 local autism experts completed the training programme and received international certificates. The individual development sessions were conducted for 40 families, out of which 10 people with autism spectrum disorder were selected for providing further support with self-development and employment opportunities.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting a social investment project aiming to provide five schools in the neighbouring communities with a safe heating system which relies on alternative and environmentally friendly energy sources. In 2021, the project started the renovation of classrooms, storage rooms and ventilations systems at the schools and equipped them with pellet stoves.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) launched a social investment project to enhance financial acumen of the local workforce through provision of training and internship services in Baku and Ganja. A total of 60 people - 30 from Baku and 30 from Ganja - will receive training in finance, accounting and taxation followed by an internship opportunity to gain practical experience. The project will also include a career fair with employers from public and private enterprises. In 2021, the participants from Baku received their first training as part of the project.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) is supporting a two-year environmental project aiming to offset carbon emissions through preventing soil erosion and desertification. As part of the project, 250,000 new trees will be planted and maintenance support will be provided for 110,000 already planted trees in the Shamkir and Samukh districts. In addition, an innovative tree planting system with water-preserving equipment and layer planting technique will be implemented on 1 hectare of the selected territory in the Gobustan district.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) launched a social project in support of the families in the Tovuz and Agstafa districts affected by the 2nd Karabakh War. As part of the project, up to 70 beneficiaries are provided with the social and psychological rehabilitation and legal services support and given an opportunity to participate in two networking camps, the one of which was already conducted in 2021.
  • bp (on behalf of its co-venturers in the joint ventures that bp operates in Azerbaijan) started a social project to support inclusive education in four schools - two in Baku and two in Sumgayit. Project will contribute to enhancing inclusive education by establishing resource rooms at schools and equipping these rooms with necessary inventory, furniture and technology, as well as training the teaching staff in using that technology to improve the learning process. The project will also support behavioral change in school community by raising social awareness about inclusive education. The project is implemented in cooperation with the Ministry of Education of Azerbaijan.

In addition, in 2021, bp alone spent more than $1.5 million on various social and sponsorship projects in Azerbaijan. Some examples of these projects include:

  • translation from English into Azerbaijani and publication of 14 academic textbooks on startup and innovation, corporate finance, marketing, social research, international relations, economic policy, managerial economics, statistics for business and economics, econometrics, psychology and information security.  This project aims to support quality of teaching in 16 specialties taught in over 15 local universities.
  • support for the establishment of a digital library at the Azerbaijan Pedagogical University to enable students and teachers to access sizeable knowledge and share content with others.
  • support for the establishment of the electronics and electrical engineering as well as energy efficiency and renewable energy laboratories at the University of Architecture and Construction aiming to enhance research and teaching capability of the University.
  • establishment of a printing and publishing centre at the Azerbaijan State Oil and Industry University to satisfy the publishing needs of over 10,000 students and teaching staff at the University.
  • sponsorship of a social project to help local startup community access expertise and funding opportunities available in Europe. The project is implemented in cooperation with the Ministry of Digital Development and Transport of Azerbaijan and with the Hungarian government agency responsible for export promotion (HEPA). The project will train up to 20 local startups to enter the European market providing them with the frameworks to scale up to European countries with the focus on Hungary, Germany and the UK.
  • support for the collection, research and publication of articles, thoughts and views by Azerbaijan’s well-known scholars, political and public figures about Nizami Ganjavi – a giant of Azerbaijan’s and the world’s poetic treasury. The publication is bp’s gift to the “Year of Nizami Ganjavi” announced by President Ilham Aliyev on the occasion of the great poet’s 880th birthday anniversary.
  • bp’s ongoing support for the development of sport through the partnership with Azerbaijan’s National Olympic (NOC) and Paralympic Committees (NPC). This included bp’s support to a group of national athletes selected as bp’s ambassador athletes at Tokyo 2020 Games. In 2021, bp celebrated the 10th anniversary of its partnership with NOC and NPC.
  • sponsorship of the ‘Greentech Summer Camp 2021’ held in cooperation with the Ministry of Energy of Azerbaijan. This two-day workshop brought together local and international specialists, representatives of a number of the state institutions and students from local universities to discuss and promote an exchange of knowledge and experience on the issues such as use of offshore wind energy, different routes of hydrogen production and renewable energy in Azerbaijan.  
  • support to the Baku Summer Energy School – a widely recognized and certified annual programme of the Caspian Center for Energy and Environment (CCEE) of ADA University. The programme brought together about 40 participants from Azerbaijan and other countries to examine and gain a better understanding of global and Caspian energy and environment issues, regional pipeline and energy security developments, fundamentals of energy, energy law and economics.
  • sponsorship of the 7th Baku International Book Fair organized by the Ministry of Culture of Azerbaijan.
  • sponsorship of the 3rd AmCham Conference on “Ethics and Compliance in Azerbaijan” which was co-initiated by bp and AmCham in 2017.
  • sponsorship of the international “UNEC Economy Forum Baku 2021” hosted by the Azerbaijan State University of Economics. The forum brought together leading public and private organizations and industry practitioners and provided a platform to discuss the most recent economic and social developments, challenges and opportunities.

Further information: 

Tamam Bayatly at bp’s press office in Baku.
Telephone: (+994 12) 525 58 95