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Baku Energy Forum: Speech by bp’s regional president, Azerbaijan-Georgia-Turkey

2 June 2022

Gary Jones, regional president

‘Delivering steadily to help energy transition ’ 



Good morning, everyone.

It’s great to see the Baku Energy Week and this Forum back after the twoyear break. This event attracts so many people from around the world.

And that’s because Azerbaijan today is an increasingly important player in global energy production.

There is a huge energy potential in this region.

I want to talk about how this potential can support the energy transition and the role the Caspian hydrocarbons can play in this process.


Continuos role of oil and gas in energy mix     


The world is going through a momentous energy transformation.

It was triggered by the need to reduce carbon emissions and tackle climate change. However, it’s no longer just a climate story.

The tragic events in Ukraine, soaring energy prices and increased cost of living have caused a global energy crisis.

Now, it is not just about cleaner energy, but also energy that is affordable and that is secure.

We call this ‘energy trilemma’.

In bp, we see opportunities to help with the energy transition, while we keep doing our main job - delivering the energy the world needs.

The bp Energy Outlook explores three distinct scenarios of the future of energy.

In all three scenarios the world will need a diverse set of fuels to meet its demand.

The energy mix of the future will mainly consist of non-fossil fuels.

But it will still include hydrocarbons for decades to come, though in a gradually lower quantity.

This means there is still a need for investing in oil and gas.

As a company, we are focusing on resilient hydrocarbons -  in other words, the barrels that will remain competitive when demand begins to decline.

Azeri-Chirag-Gunashli - fueling energy transition 


Our current hydrocarbons business in the Caspian perfectly fits this definition.

For the past 30 years, we have been privileged to work with Azerbaijan and global partners to build a world-class energy infrastructure.

And it can serve as a foundation for the next chapter of clean, affordable and reliable energy developments in this region.

Our Azeri Central East project – ACE in short - is a great example.

ACE is the new stage of development of the giant ACG field.

This $6 billion project will include a new offshore platform designed to process up to 100,000 barrels of oil per day.

ACE is already 70% complete and will come online in 2023.

The almost finished topside units you see on the screen weigh more than 2,000 tons each.

The jackets of the platform are also close to completion. Later this year 3we will sail them away to install offshore.

ACE is designed to be lower carbon.

It will be the first remotely operated offshore platform in the Caspian - its primary control room will be located at the Sangachal terminal.

Most of its systems and tasks will be automated to reduce work-hours and allow focusing on more critical work.

It will be connected to the East Azeri platform for drawing back-up power from the existing infrastructure.

It will have thermal imaging cameras installed throughout the platform to detect and repair any small greenhouse gas emissions and larger leaks that could cause harm.

All this means less travel, fewer shutdowns and outages, and hence lower flaring and emissions.


Shah Deniz - secure energy provider 


Resilient hydrocarbons also mean secure and reliable.

Just like the Caspian gas, which has helped the security and diversity of supply for regional and European markets.

This has been the primary objective of Shah Deniz and the Southern Gas Corridor since the start.

Today, the Shah Deniz field produces about 70 million cubic metres of gas and about 100,000 barrels of condensate per day, while still ramping up.

And it does so with a phenomenal operating efficiency of almost 100%.

At plateau, Shah Deniz will produce around 26 billion cubic meters of gas per year.

By the way, its sophisticated subsea production system is the first in the Caspian and the largest operated by bp globally.

Shah Deniz and SGC are clearly today’s, but also tomorrow’s top story.

There are significant expansion opportunities for both projects.

This giant gas value chain is designed as scalable so that its initial throughput capacity can be expanded if and when needed.

We are currently working with SOCAR and other partners to see how we can increase gas supply to Europe.

With this, both Shah Deniz and the Southern Gas Corridor can further contribute to the energy transition and security of supply. 


Focus on future 


Azerbaijan has come a long way in developing its energy industry.

Thanks to its advanced infrastructure, strong partnerships and suitable conditions the country can get ahead in the energy transition.

And bp is ready to help.

We can support Azerbaijan in developing its energy resources - both hydrocarbons and increasingly low carbon.

Just last week we presented to the Ministry of Energy a set of recommendations on decarbonization opportunities for Azerbaijan.

It is built on our expertise in low carbon technology and business models worldwide. And it envisions how Azerbaijan may capitalize on the energy transition out to 2050 using its rich energy potential.

The possibilities are many - ranging from resources, such as solar, wind and geothermal, to low carbon solutions, such as carbon capture and 5hydrogen generation. Let me name a few, on which we are already in action.

First, we are finding ways to decarbonize the existing oil and gas production.

For example, we are working hard to eliminate routine flaring at our sites.

We are installing methane detectors across our facilities to reduce emissions by 50%. We are evaluating how to electrify our operations and stop burning fuel gas for power. The electrification of the Sangachal terminal could be a good start. It is currently powered by gas turbines, but it could be connected to the national grid.

This would lead to not only less emissions, but also more gas to export through SGC.

In parallel, we are finalizing the negotiations to build a 240-megawatt solar power plant in Jabrayil.

That is enough to power more than 200,000 households.

We are already seeing the picture where these separate projects can become parts of one integrated energy system.

We are also teaming up with SOCAR for similar potential renewables projects.

This is a natural continuation of our years-long solid partnership.

Finally, just an hour ago, we signed an agreement to support a new master’s degree programme on renewable energy at the Azerbaijan State Oil and Industry University.

It will bring up a brand-new generation of national energy experts.

They will navigate the country through its transition to a clean energy future.




So, in closing, let me go back to where I started.
We are going through an energy transition.
This transition is about clean, affordable and reliable energy the world demands.
Azerbaijan has vast energy potential.
And that’s why it is uniquely placed to get ahead in this transition and build a new energy future.
We believe this future will be just as bright as the past 30 years.
And we look forward to building it together.