British energy major bp and its joint venture partners have commenced production operations in the Caspian Sea, marking the first-ever commercial extraction of non-associated gas (NAG) from the Azeri–Chirag–Gunashli (ACG) field.
The commencement of gas production signals a shift for ACG, one of the world’s largest oil-producing fields for nearly three decades.
The initial NAG well, drilled from the existing West Chirag platform, is a critical first step in unlocking ACG’s significant non-associated gas resource potential. The ACG field has recoverable reserves estimated at four trillion cubic feet and an ultimate upside of up to six trillion cubic feet.
The well targeted two priority gas reservoirs sitting beneath the current oil layers, confirming significant gas resources and encountering high-pressure gas in the deeper Qirmaki Lower Sand formation, where initial testing is now focused.
“This is a big day for Azerbaijan and for the ACG co‑venturers,” said Gio Cristofoli, bp’s regional president for Azerbaijan, Georgia and Türkiye.
“ACG has a long and successful history and now, nearly three decades into oil production, the field continues to hold potential to deliver value for the nation and its investors as it starts this new chapter.”
“With the launch of its gas journey alongside oil, ACG is now uniquely positioned as an integrated oil and gas asset, leading the regional industry and contributing to Azerbaijan’s plans to increase energy supplies to Europe.”
To ensure maximum infrastructure efficiency, the extracted gas and condensate are being routed directly to the onshore Sangachal Terminal using existing offshore oil and gas development systems.
The operations follow an addendum to the ACG production sharing agreement signed in late 2024, which granted exploration and production rights for the gas reservoirs until 2049. Over the next 23 years, the project is expected to unlock billions of dollars in capital investment for full-field gas development.
The project is operated by bp, which holds 30.37 per cent alongside co-venturers SOCAR, with 35.3 per cent, MOL, INPEX, ExxonMobil, TPAO, and ONGC Videsh.
