Baku Energy Forum 2024: Speech by bp’s regional president, Azerbaijan-Georgia-Turkiye

Introduction 

• Thank you, Rovshan. Thank you, Patrick. 
• As always, it’s a pleasure and honour to join Baku Energy Week and talk at this Forum.
• Particularly this year – the year of 30th anniversary of the ACG PSA.
• The agreement that opened a glorious page in Azerbaijan’s new oil history and turned the country into a modern energy hub.
• The past three decades have been a remarkable journey.
• A great example of what can be achieved when government and industry share a common purpose.
• Now, what about today and the next few decades – the topic of this panel? 

Balanced energy system

• Energy is vital to human progress.
• Hydrocarbons continue to play a significant role in that.
• Today, oil and gas account for around 55% of all energy consumed:
• But the global energy system is fragile.
• A disruption to just 3% of the world’s gas supply led to a sevenfold increase in the gas price and a cost-of-living crisis.
• Clearer than ever, the world wants and needs secure, affordable and lower carbon energy – all at the same time.
• Achieving that takes balance:

1. Investment in today’s energy system, which is mostly oil and gas – to keep energy flowing to where it is needed.  
2. AND not OR.
3. Investment in the businesses driving the energy transition – growing lower carbon energies.
   

bp’s strategy in action – AGT example

• bp is supporting this balanced approach to energy
• Our strategy remains unchanged: we invest in today’s energy system while building out tomorrow’s.
• Globally, we are investing up to $8 billion more this decade in the energy system of today.
• That’s investment into oil and gas, which is the core of our business, to keep energy flowing where it is needed.
• Our business in the Caspian is a perfect example.

1. We have recently started up ACE – our seventh production platform on ACG and bp’s first offshore platform fully controlled from onshore.
2. We have launched bp’s largest-ever seismic programme on ACG - to better understand the reservoir and maximize its recovery.
3. We are preparing to drill the first ACG deep gas production well this year with the view to achieve first gas in early 2025.

• We are using all opportunities to make our operations safer, more efficient, and with fewer emissions, such as:

1. applying innovative engineering, advanced digital technology and automation on ACE;
2. deploying methane measurement devices on all our sites in the region;
   

• We are also matching our investment in hydrocarbons spending up to $8 billion more by 2030 on what we call our transition growth engines.
• Again, Azerbaijan is a great example.
• We are getting ready to build a 240MW solar plant in Jabrail – our Project Sunrise - targeting FID by the end of this year.
• The electricity generated in Jabrail will be offtaken to run our operations at the Sangachal terminal, balancing it with the grid power.
• This will allow us to stop burning fuel gas to generate energy the terminal needs and freeing up more volumes for export.
• A great example of a virtual power transfer model in use.

Conclusion 

• We are supporting the balanced approach to energy. 
• Producing oil and gas today and for decades to come.
• And building new low carbon energies for the future.
• That’s what the world needs – energy transition, and that’s what bp’s strategy specifically aims to deliver.
• Azerbaijan is well placed for the energy transition.
• As the country’s long-term and reliable partner, bp is hugely proud to support it in this journey.