BAKU, Azerbaijan, June 1. bp has announced the start of non-associated gas (NAG) production operations on the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea, Trend reports via bp.
This marks the first-ever commercial gas production operations on ACG, one of the world’s largest oil-producing fields.
The initial NAG well, drilled from the existing West Chirag platform, is a critical first step in unlocking ACG’s significant non-associated gas resource potential. As well as delivering early production, the well provides important reservoir and flow data, supporting appraisal of the resource base to inform future full-field gas development.
The NAG resources of ACG are believed to be significant, with an estimated 4 trillion cubic feet of recoverable reserves and a potential upside to 6 trillion cubic feet.
ACG’s first NAG production operations have commenced at the initial producer well drilled last year into two priority NAG reservoirs – the shallower Qirmaki Upper Sand and the deeper Qirmaki Lower Sand – both located beneath the producing oil reservoirs. The well confirmed the presence of gas resources in the Qirmaki Upper Sand reservoir and encountered high pressure gas in the Qirmaki Lower Sand reservoir.
The first NAG operations are focused on the Qirmaki Lower Sand reservoir for an initial period of well and reservoir testing activities.
Gas and condensate produced from the well will be directed to the Sangachal terminal via the existing ACG infrastructure through the integration of oil and gas development systems, enabling the efficient use of existing offshore facilities.
The addendum to the existing ACG production sharing agreement (PSA) enabling the exploration, appraisal, development of and production from the NAG reservoirs of the ACG field was announced on 20 September 2024.
NAG reservoirs are multiple geological formations beneath and above the currently producing oil reservoirs, and which were not initially included in the existing ACG PSA.
The addendum is effective until the end of the existing ACG PSA in 2049. During the next 23 years, and subject to exploration and appraisal of the NAG reservoirs, there is potential for billions of dollars of capital to be invested in the full field development of NAG reservoirs of the ACG field.
The participating interests of the ACG co-venturers in the NAG project are the same as in the existing ACG PSA: bp – operator (30.37%), SOCAR (35.3%), MOL (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%), ONGC Videsh (2.92%).
