Partners Take Investment Decision on Azeri Central East
The partners developing the $6bn Azeri Central East (ACE) oil and gas project in the Caspian Sea, Azerbaijan’s state-owned Socar announced April 19.
The project is the next stage of development of the giant Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea. The ACE development includes a new offshore platform and facilities designed to process up to 100,000 barrels of oil per day.
The investment decision follows a 2017 agreement with the government of Azerbaijan to extend the life of the ACG field until 2049. More than $36bn has been invested into the development of the ACG area since the original PSA was signed in 1994.
The 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 140m. First production is forecast in 2023 and with total output estimated at 300mn barrels. New pipelines to transfer oil and gas to existing ACG Phase 2 export pipelines are also planned.
BP holds 30.37% in the project. Azeri state-controlled Socar has a 25% stake. International majors Chevron, Inpex, Equinor, ExxonMobil, TPAO, ITOCHU, ONGC Videsh Limited hold various minority interests.
“Today’s sanctioning marks yet another important milestone in the development of ACG for the benefit of the nation, which began 25 years ago with the signing of the contract of the century,” pronounced Socar president Rovnaq Abdullayev. “This strategic decision supports Azerbaijan’s increasing role as an energy supplier for the regional and global markets,” he added.
BP chief executive Bob Dudley said: “Working together over the past 25 years, this remarkable partnership has turned these world-class assets into tremendous benefits for the people of Azerbaijan. The ACE extension builds on that legacy and helps ensure that the next quarter century will be just as bright.”