Azeri-Chirag-Gunashli

Location and Geography

The ACG complex is situated approximately 100-120 km east of Baku, Azerbaijan, in the Caspian Sea. The fields are at various water depths, with the Chirag platform at 120 meters, West Azeri at 120 meters, and Deepwater Gunashli at 175 meters.

Project Components

The ACG complex includes several oil and gas fields:

• Azeri Oil and Gas Field: This is the central part of the ACG development, with platforms such as Central Azeri, West Azeri, and East Azeri.
• Chirag Oil and Gas Field: This includes the Chirag and West Chirag platforms.
• Guneshli Deepwater Oil and Gas Field: Known as Deepwater Gunashli (DWG), this is the third phase of the ACG development.

Phases of Development

The ACG project has been developed in several phases:

Phase 1

• This phase involved the development of the central part of the Azeri field, including the installation of a platform complex, a 30-inch offshore pipeline over 190 km, and an onshore terminal at Sangachal. The project was completed in late 2004, with production starting in 2005. The primary objective was to produce the recoverable reserves in the central Azeri field, with an anticipated production rate of over 400,000 barrels of oil per day.

Phase 2

• This phase expanded the development to the western and eastern portions of the Azeri field. It included the placement of new platform complexes, the expansion of the compression and water injection platform (CWP) at Central Azeri, and the installation of a second 30-inch offshore pipeline. The West Azeri platform began production in December 2005, and the East Azeri platform in January 2007. Production was estimated to peak in 2014 for West Azeri and 2015 for East Azeri.

Phase 3

• This phase focused on the development of the Deepwater Gunashli field, involving the placement of a platform complex, drilling of main and flanking wells, and the installation of an offshore spur pipeline connecting to the Phase 1 and Phase 2 mainlines. The DWG complex has been in operation since April 2008 and includes subsea water injection wells to increase oil production.

Additional Developments

• Azeri Central East (ACE) Platform: The latest addition to the ACG complex, the ACE platform began oil production in 2024. It is designed to process up to 100,000 barrels of oil per day and is expected to produce up to 300 million barrels over its lifetime. The platform is controlled from shore and includes new infield pipelines linking to existing export pipelines.

Production and Reserves

• Oil Reserves: The ACG complex has estimated oil reserves of approximately 4.6 billion barrels, representing roughly half of the proven oil reserves in Azerbaijan’s offshore fields.
• Gas Reserves: The complex also holds significant gas reserves, estimated at 3.5 trillion cubic feet of associated natural gas.
• Production Rates: As of 2024, the total ACG production averages around 336,000 barrels per day. Specific platforms contribute the following:
  • Chirag: about 23,000 barrels per day.
  • Central Azeri: about 96,500 barrels per day.
  • West Azeri: about 75,500 barrels per day.
• Cumulative Production: By 2019, the ACG complex had produced over 3.6 billion barrels of oil.

Operators and Ownership

• The project is operated by BP Exploration (Caspian Sea) Limited, with the following ownership structure:
  • SOCAR (State Oil Company of the Azerbaijan Republic): 25.0%
  • BP Exploration (Caspian Sea) Limited: 30.37%
  • MOL Group: 9.57%
  • INPEX Southwest Caspian Sea, Ltd.: 9.31%
  • Other partners including Equinor, ExxonMobil, TPAO, ITOCHU, and ONGC Videsh.

Infrastructure

• The project includes several offshore platforms connected by bridges, offshore pipelines, and an onshore terminal at Sangachal for processing and exporting oil and gas.
• The platforms are equipped with production, drilling, and quarters (PDQ) facilities, as well as compression and water injection platforms (CWP) to manage water and gas injection and associated gas export.

Environmental and Socio-Economic Impact

• The development of the ACG complex has undergone extensive Environmental and Socio-economic Impact Assessments (ESIAs). These assessments have been conducted to minimize environmental impacts, such as reducing the area impacted by offshore structures and minimizing the risk of oil spills. The project also includes measures for long-term environmental and socio-economic management.

Milestones and Anniversaries

• The ACG field began production in 1997 with the Early Oil Project (EOP) centered on the Chirag-1 platform.
• As of 2024, the ACG complex is celebrating its 30th anniversary, marking significant milestones in its development and production history.