History
Exploration of the Azeri–Chirag–Gunashli development started at the beginning of 1990s. In January 1991, the Azerbaijani government announced separate international tenders of exploration rights for Azeri, Chirag, and Gunashli fields. In June 1991, a consortium of Amoco, Unocal, British Petroleum, Statoil, McDermott, and Ramco was formed for a development of Azeri field. Azerbaijan was represented in the consortium by SOCAR. Negotiations were expanded to include all three fields. After Heydar Aliyev became President of Azerbaijan in 1993, talks with foreign companies were stopped and Lukoil was invited to the consortium. Negotiations resumed in 1994.[8] The production sharing agreement (PSA) was signed by the parties on 20 September 1994 for development of the fields for 30 years.[9][10][11][12] The day of the signing of PSA agreement is celebrated as The Day of Oilworkers in Azerbaijan.[1]
At the first stage, the consortium started development drilling of the Chirag field in August 1997. First oil was produced in November 1997.[12] This development stage was also known as the Early Oil Project (EOP). Originally, produced oil was exported through the Baku–Novorossiysk pipeline. A contract on the oil transportation via Russia to the Black Sea port of Novorossiysk was signed on 18 February 1996. The oil transportation through the pipeline started on 25 October 1997.[13] For the diversification of the export routes, construction of the Baku–Supsa Pipeline was agreed in 1996.[13] The pipeline became operational in 1998 and was officially inaugurated in 1999.[12] At the Chirag field, the water injection project was implemented in 1999 and the drilling technology was upgraded in 2000.[12]
The second stage of the development consisted of the development of the Azeri field. The development of Azeri field started in 2002. Central Azeri living quarters arrived in Baku in July 2003 and drilling modules arrived in Baku in July 2003. The Central Azeri jacket was completed in March 2004. To accommodate addition oil, the Sangachal Terminal was upgraded in March 2003. After installing the Central Azeri gas pipeline, the Central Azeri platform was launched in July 2004. The platform was installed by October 2004, and production started in February 2005. The Central Azeri compression and water injection platform topsides was launched in July 2005. It injected first gas in May 2006[12]
The West Azeri drilling modules arrived in Baku in August 2004 and the platform launched in May 2005. The platform's topsides was installed in September 2005 and production started in January 2006.[12] East Azeri drilling modules and quarters arrived in Baku in June 2005 and the platform was launched in March 2006. The topside was installed in March 2006 and the production began in October 2006.[12]
The Deepwater Gunashli pre-drilling program started in December 2005. Drilling modules and quarters arrived in Baku in June 2006.[12] The platform became operational in April 2008.[14]
On September 14, 2017, The Azerbaijan Government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh have signed an agreement to extend the PSA for ACG fields until 2049.[15]
On April 19, 2019, SOCAR president Rovnag Abdullayev and BP’s regional president for Azerbaijan, Georgia, and Turkey, Garry Johns signed a contract cost $6 billion. The final investment decision on the Azeri Central East (ACE) platform, which is planned to be built on the Azeri–Chirag–Gunashli (ACG) block, has been adopted at the signing ceremony. The construction is scheduled to start in 2019, and the completion is scheduled for mid-2022.[16][17][18][19]
In the first quarter of 2024 production was 339000 oilbbl/d, approximately one-third of peak value.[2]
