(MENAFN- Trend News Agency)
BAKU, Azerbaijan, July 15. bp, as the operator
of hydrocarbon development at Azerbaijan's key
Azeri-Chirag-Gunashli (ACG) and Shah Deniz fields, is prioritizing
the maximization of recoverable reserves while fulfilling
commitments to reduce greenhouse gas emissions, Vice President for
the Caspian region, Communications and External Affairs Bakhtiyar
Aslanbayli told Trend in an exclusive interview.
Referring to the future of ACG, he highlighted two main
directions: continuing oil production, ongoing since 1997, and
expanding gas production from both shallow water and deep
reservoirs of ACG.
"We are as excited about ACG's future as we have been about its
remarkable 30-year journey since the signing of the 'Contract of
the Century' in September 1994. This block forms the cornerstone of
our future plans," emphasized Aslanbeyli.
According to him, bp's primary objective currently is to
maximize recoverable reserves from ACG, leveraging a wide range of
innovative technologies employed in the Caspian region.
"This year, we launched a $370 million high-resolution 4D
seismic program at ACG, the largest bp-led initiative of its kind.
Spanning five years, this unique program focuses on the 'Balakhani
Formation' and 'Fasil Formation' (productive reservoirs). Covering
740 square kilometers, the program will monitor the ACG area five
times, enhancing our understanding of reservoir formations and
advancing our goals to enhance oil production at ACG. We are
pleased to report that over 70 percent of this year's planned work
under the 4D seismic program has already been completed," stated
the vice president.
He noted that for oil production at ACG, bp has high
expectations for the seventh production platform, Azeri Central
East (ACE), which commenced operations in April 2024.
"At ACE, oil is currently being extracted from one well,
producing approximately 8,000 bpd. By year-end, we plan to drill
two additional production wells, increasing production to 24,000
bpd this year," stated the bp vice president.
He emphasized that, in terms of technology and digitalization,
ACE represents bp's most advanced platform globally.
"We are confident that ACE will significantly contribute to the
sustainable and secure supply of energy resources from the Caspian
Sea for decades to come," Aslanbeyli concluded.
ACE is projected to reach its peak oil production of 100,000
barrels per day within the next few years, which will help
stabilize production decline at the platform.
Regarding the prospects for extracting natural gas from the ACE
block, the bp vice president highlighted that a successful well has
already been drilled from the Chirag platform into a deep reservoir
on the southern flank of the ACE. This success has bolstered
optimism about future natural gas recovery from ACE's deep
layers.
"Based on data analysis from the initial well, we have planned a
second well to be drilled from the West Chirag platform in 2024. We
aim to gather additional natural gas data from this well and
convert it into a production well, marking ACE's first deep-gas
production well for extracting natural gas from ACG," Aslanbeyli
explained.
The bp vice president indicated that the first gas from ACG's
deep-gas reservoir is scheduled for production in 2025.
Since the beginning of production at ACG in autumn 1997,
approximately 591 million tons of oil and over 221 billion cubic
meters of associated gas have been extracted.
The stakeholder distribution in ACG is as follows: bp (30.37
percent), SOCAR (25.0 percent), MOL (9.57 percent), INPEX (9.31
percent), Equinor (7.27 percent-the sale to SOCAR was finalized in
December), ExxonMobil (6.79 percent), TPAO (5.73 percent), ITOCHU
(3.65 percent), and ONGC Videsh (2.31 percent). The ACG contract
expires in December 2049.
"We will celebrate the 30th anniversary of the ACG development
contract this September. At the Caspian Oil & Gas Exhibition in
June 2024, we showcased the 30-year history of successful ACG
development, highlighting our strong cooperation with Azerbaijan
and significant achievements in the country's energy sector,"
Aslanbeyli emphasized.
Gas strategy
Aslanbeyli highlighted plans to begin implementing the project
for a special compressor platform at the Shah Deniz field starting
in the second quarter of 2025.
To note, gas and condensate production at Shah Deniz commenced
in December 2006.
"Our goal is to extend the period of stable production at Shah
Deniz and enhance gas sales by extracting additional volumes. To
achieve this, we intend to construct a new compressor platform,
which we view as a technically viable and economically sound
solution," he emphasized.
He added that the platform will be operatorless and
remote-controlled, operated from the Sangachal onshore terminal via
a high-voltage electric cable.
"The compressor platform project is under development and is
scheduled to commence implementation in the second quarter of 2025.
This project represents the third stage of Shah Deniz's
development, underscoring the field's pivotal role in Azerbaijan's
gas future," he highlighted.
In the first half of 2024, Shah Deniz achieved peak production,
producing 14 billion cubic meters of natural gas. Over the entire
development period, the field has yielded a total of 223 billion
cubic meters of gas and 46.6 million tons of condensate.
"The current year marks significant milestones for us. In
February, we achieved a major goal by commencing gas and condensate
production from the first well on the remaining fifth wing of Shah
Deniz, specifically the northeast wing. Within the next year, we
plan to operationalize two more wells on this wing, fulfilling our
commitments for gas supply from Azerbaijan to global markets," the
VP emphasized.
He highlighted that a total of 21 wells have been drilled as
part of the full-scale development of Shah Deniz (phase 2),
distributed across the northern, western, southeastern,
southwestern, and northeastern wings.
"As we pursue the expansion of gas production in Azerbaijan,
alongside the Shah Deniz project, including the future compressor
platform, we are actively exploring new gas sources. For instance,
we are optimistic about potential gas deposits in the
Azeri-Chirag-Gunashli field block and plan to drill the first
production well there this year for initial gas production in 2025.
Additionally, we are evaluating hydrocarbon reserves from the SAX01
well in the Shafag-Asiman Caspian block," said Aslanbeyli.
He highlighted that the SAX01 exploration well, completed in
March 2021, reached a depth of 7,189 meters and encountered gas
condensate reserves in some intervals of the productive Fasil
Formation. "We have processed all the data and interpreted the
results, planning the next steps," he added.
Aslanbeyli emphasized that, as part of its commitment, bp will
continue supporting Azerbaijan in its efforts to increase gas
exports.
Environmental initiatives
bp's vice president announced that the deployment of the 240
megawatt solar power plant project in Jabrayil will slash overall
emissions from bp's regional operations by 11 percent.
"We are currently advancing the 240 megawatt solar energy
project in Jabrayil. Commercially, this initiative is backed by the
decarbonization of operations at the Sangachal terminal and its
electrification. This marks the debut of Azerbaijan's Virtual Power
Transmission Mechanism business model, enabling solar power
generation in Jebrail to be transmitted to the local grid with an
equivalent volume received in Baku's Garadagh district for the
Sangachal terminal via a swap with Azerenerji. This integrated
project is economically viable, aiming to reduce gas usage at the
Sangachal terminal for power generation and thereby cut total
emissions from bp's regional operations by 11 percent," Aslanbeyli
said.
He highlighted that the gas volumes resulting from bp's planned
initiatives will be exported, bolstering the reliability of
Azerbaijani gas supplies to international markets.
"We have made substantial strides in collaboration with the
Ministry of Energy and Azerenerji on the technical and commercial
aspects of this multifaceted project, and we anticipate making a
final investment decision later this year. The significance of the
Jabrayil solar energy project in advancing Azerbaijan's energy
transition cannot be overemphasized," he said.
SOCAR and the Azerbaijan Investment Company (AIC) are also
involved in the project. Details regarding their share
participation will be clarified in the autumn.
Aslanbeyli emphasized that bp plans to expand collaboration with
SOCAR into new areas to support Azerbaijan's energy transition.
"Looking ahead, we will work closely with SOCAR on new projects
in renewable energy, decarbonization, and electrification in
Azerbaijan. This requires an innovative approach, and we aim to
lead in this endeavor," said bp's vice president for the Caspian
region.
He highlighted bp's ongoing efforts to enhance safety and
efficiency and its commitment to reducing greenhouse gas emissions
and decarbonizing oil and gas production.
"We've recently deployed technologies to measure methane
emissions across all our regional sites. This will improve
measurements, enhance our understanding, establish new baselines,
and contribute to bp's global goal of a 50 percent reduction in
methane emissions," Aslanbeyli explained.
He highlighted another significant green initiative by bp in
Azerbaijan: the ongoing project to replace diesel generators at the
Shah Deniz Alpha production platform with electricity sourced from
the neighboring Shah Deniz Bravo platform.
"This initiative will not only reduce carbon dioxide emissions
at Shah Deniz Alpha but also enhance operational efficiency at the
Shah Deniz gas condensate project," the bp vice president
explained.
He also mentioned that bp and SOCAR have committed to the
Methane Guiding Principles (MGP) and signed a bilateral memorandum
of understanding, contributing to the international Global Methane
Initiative (GMI) launched under the MGP in November 2023.
"This collaborative effort aims to accelerate methane emission
reduction on a national scale. Together with SOCAR, we aim to
coordinate actions among key stakeholders in Azerbaijan, including
partner companies, research institutes, and government
representatives, to develop a robust roadmap for methane emission
reduction tailored to Azerbaijan's energy sector. We believe that
by working together, we can effectively seize opportunities to
combat methane emissions for the benefit of industry, society, and
the government," he concluded.
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