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Azeri Central East (ACE) development project

Next stage of development of giant ACG field in Caspian Sea;
New 100,000 barrel a day platform expected onstream;
New development approved in 25th year of landmark partnership

The $6 billion development 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 up to 300 million barrels over its lifetime. 


The sanction is the first major investment decision by the ACG partnership since the extension of the ACG production sharing agreement (PSA) to 2049 was agreed in 2017. More than $36 billion has been invested into the development of the ACG area since the original PSA was signed in 1994. 


Construction activities, which commenced in July 2019 and run through mid-2022, will take place in-country utilizing local resources. It is expected that, at peak, construction activities will create up to 8,000 jobs.


The Azeri Central East (ACE) project is centred on a new 48-slot production, drilling and quarters platform located mid-way between the existing Central Azeri and East Azeri platforms in a water depth of approximately 140 metres. The project will also include new infield pipelines to transfer oil and gas from the ACE platform to the existing ACG Phase 2 oil and gas export pipelines for transportation to the onshore Sangachal Terminal. 


In addition, there will be a water injection pipeline installed between the East Azeri and ACE platforms to supply injection water from the Central Azeri compression and water injection platform to the ACE facilities.


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. 


In the first  quarter ACE (Azeri Central East) platform topsides and drilling fabrication activities continued at the Bibi-Heybat fabrication yard. However, the pandemic related restrictions started to cause delays in materials and major equipment deliveries towards the end of the quarter resulting in pauses of activities.   The living quarters module fabrication progressed in Sweden.
The jacket fabrication also progressed at the Heydar Aliyev Baku Deepwater Jackets Factory (BDJF). The fabrication of the jacket pin piles is complete for installation later in the year. The subsea fabrication has commenced at BDJF with the subsea pipe coating currently ongoing at Caspian Pipe Coating (CPC).