In the first quarter of 2020, Azerbaijan International Operating Company (AIOC) spent about $150 million in operating expenditure and about $522 million in capital expenditure on ACG activities, respectively, up 8.7% and 87% from the previous year, Report informs, citing BP-Azerbaijan.
During the quarter ACE (Azeri Central East) platform, topsides and drilling fabrication activities continued at the Bibi-Heybat fabrication yard. However, the pandemic related restrictions started to cause delays in materials and major equipment deliveries towards the end of the quarter resulting in pauses of activities. The living quarters module fabrication progressed in Sweden.
The jacket fabrication also progressed at the
The Azeri Central East (ACE) project is centered 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 140 meters.
The Final Investment Decision on the ACE was made on April 19, 2019. The project worth $6 billion includes new offshore platform and plants capable of producing 100,000 barrels per day. During the period of use, the platform is forecasted to produce 300 million barrels. The first production is expected to start in 2023.
The initial ACG Production Sharing Agreement (PSA) was signed on September 20, 1994. Since that time, around $38 billion of investment has been made into the development of the ACG field. In 2017, the ACG PSA was extended until the end of 2049.
ACG participating interests are: BP (30.37%), SOCAR (25.0%), MOL (replaced Chevron as of 16 April 2020 (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh Limited (OVL) (2.31%).