BP (BP) and its partners have begun the first commercial production of non-associated natural gas from Azerbaijan's giant Azeri-Chirag-Gunashli field, the British energy giant said on Monday.
The UK energy major, operator of the offshore Caspian Sea project, said that gas production has commenced from an initial well drilled from the West Chirag platform.
The project marks the first commercial extraction of natural gas from ACG, which has been producing oil for nearly three decades.
The startup follows a 2024 agreement that expanded the field's production-sharing contract to include exploration and development of gas-bearing reservoirs not covered by the original oil-focused deal.
BP said the non-associated gas resources at ACG are estimated at 4 trillion cubic feet of recoverable reserves, with potential upside of about 6 trillion cubic feet. The volumes could support Azerbaijan's ambitions to increase energy exports to Europe as the continent seeks to diversify supply sources.
The initial well targeted two gas-bearing formations beneath the field's producing oil reservoirs: the Qirmaki Upper Sand and Qirmaki Lower Sand. BP said the well confirmed gas resources in the upper formation and encountered high-pressure gas in the deeper reservoir.
The energy firm said that early production and testing activities are currently focused on the Qirmaki Lower Sand reservoir, with gas and condensate transported to Azerbaijan's Sangachal Terminal via existing offshore infrastructure.
The approach allows the project to leverage existing oil production facilities, reducing development costs.
The gas project is expected to attract billions of dollars of investment over the coming decades if further appraisal confirms the scale of the resource base. The addendum to the ACG production-sharing agreement remains effective through 2049, providing a framework for long-term development.
ACG is operated by BP, which holds a 30.37% stake. Other partners include Azerbaijan's state energy company SOCAR with 35.3%, Hungary's MOL, Japan's INPEX, ExxonMobil (XOM), Turkey's TPAO and India's ONGC Videsh.
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