BP reports decline in oil production from ACG block

According to BP Exploration (Caspian Sea) Limited, the operator of the Azeri-Chirag-Gunashli (ACG) block, oil production in the first half of 2024 amounted to approximately 61 million barrels (8 million tons). The decline in output compared to the same period in 2023, when the block produced 68 million barrels (9 million tons) of oil, translates to a 10.3% reduction in barrels and an 11.1% drop in tons. Daily average oil production in the first six months of 2024 stood at 336,000 barrels, down from 375,000 barrels in the previous year.

The ACG block, located in the Caspian Sea, is one of Azerbaijan's most important oil fields. It consists of several platforms, each contributing to the overall production. The Chirag platform averaged 22,000 barrels per day (b/d), Central Azeri produced 96,000 b/d, West Azeri extracted 77,000 b/d, East Azeri delivered 52,000 b/d, Deepwater Gunashli contributed 57,000 b/d, West Chirag produced 29,000 b/d, and Central East Azeri added 3,000 b/d.

In the first half of 2024, expenditures on the ACG development project totaled $941 million, a 3.8% decrease from the previous year. Operational costs accounted for $243 million, while capital expenditures stood at $698 million.

During this period, 9 oil producing wells and one water injection well were drilled on the ACG block. As of the end of June 2024, the field had 144 active oil producing wells, 45 water injection wells, and 8 gas injection wells in operation.

The original contract for the development of the Azeri, Chirag, and deepwater portion of the Gunashli fields was signed in 1994, with an expiration date set for 2024. However, in September 2017, a new contract was inked, extending the project's lifespan until 2050. The current shareholding structure of the ACG project includes BP plc (30.37%), the State Oil Company of Azerbaijan (SOCAR) (25%), MOL (9.57%), ExxonMobil (6.79%), ONGC Videsh (2.31%), Inpex Corp. (9.31%), ITOCHU Oil (3.65%), Equinor (7.27%), and TPAO (5.73%).