Celebrating 30 Years Of The ACG Project: Legacy Of Energy And Innovation


(MENAFN- AzerNews) Akbar Novruz Read more

Azeri-Chirag-Gunashli is celebrating its 30th anniversary in 2024. On this greatly achieved landmark, Azernews presents a detailed overview of the Azeri-Chirag-Gunashli (ACG) project's legacy and the significant implications that lie ahead in the future.

On September 20, 1994, Azerbaijan's government and a consortium of international oil companies signed the groundbreaking Azeri-Chirag-Gunashli Production Sharing Agreement (PSA), also known as the“Contract of the Century.” This contract, which was extended in September 2017 until mid-century, marked the beginning of a transformative era for Azerbaijan, solidifying its position as a major energy supplier and catalysing significant economic growth.

The 30th anniversary of ACG highlights its pivotal role in Azerbaijan's oil and gas industry, celebrating a legacy of innovation and partnership.

Key Facts about ACG:

  • Since production began in November 1997 through the end of Q2 2024, ACG has produced approximately 593 million tonnes (about 4.4 billion barrels) of oil.
  • Over 4.3 billion barrels of ACG oil have been exported globally via the Baku-Tbilisi-Ceyhan pipeline.
  • From 2006, 5,707 tankers carrying ACG oil have departed from the Ceyhan terminal.
  • Approximately 57 billion cubic meters of associated gas have been delivered to Azerbaijan from the start of production through Q2 2024.
  • By the end of Q2 2024, capital expenditure for the ACG project reached $45 billion.
  • Since the inception of the ACG project in 1994, bp and its co-venturers have invested around $111 million in sustainable development projects in Azerbaijan.
  • On September 14, 2017, the ACG PSA was extended until 2049, and a $6 billion development project, Azeri Central East (ACE), was sanctioned on April 19, 2019. The first oil from ACE was safely delivered on April 16, 2024.
  • The ACG project saw the renovation of one platform (Chirag 1), construction of eight new platforms, development of a major oil and gas storage and processing terminal, and the installation of an extensive subsea pipeline network.
  • As of the end of Q2 2024, ACG operated 144 production wells, with 45 used for water injection and eight for gas injection.
  • The project has maintained an excellent safety record and conducted around 160 Environmental Impact Assessments and 280 monitoring surveys.

The ACG project's three-decade journey stands as a testament to the enduring partnership and innovation in the energy sector, significantly contributing to Azerbaijan's economic development and global energy markets.

SOURCE: British Petroleum Azerbaijan

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