Azerbaijan boosts gas output from ACG by nearly 3% in 1Q26

In January–March 2026, 3.5 billion cubic meters of gas were produced from the Azeri–Chirag–Gunashli (ACG) block of fields in Azerbaijan's sector of the Caspian Sea, Report informs, citing the country's Energy Ministry.

According to operational data for the first quarter of 2026, this is 0.1 billion cubic meters, or 2.9%, more than in the first quarter of 2025.

Overall, Azerbaijan produced 12.6 billion cubic meters of natural gas in Q1 2026, the same as in the corresponding period last year. Shah Deniz yielded 6.9 billion cubic meters, up 0.1 billion, or 1.5% year‑on‑year, while Absheron produced 0.4 billion cubic meters, unchanged from last year.

The State Oil Company of Azerbaijan's (SOCAR) gas production totaled 1.8 billion cubic meters, down 0.2 billion, or 10%, compared to Q1 2025.

Since the start of operations, ACG and Shah Deniz have produced 519 billion cubic meters of gas as of April 1, 2026 – 247.4 billion from ACG and 271.6 billion from Shah Deniz.

ACG is Azerbaijan's largest oil field block. The first production sharing agreement (PSA) for the development of the block was signed on September 20, 1994. On September 14, 2017, a new agreement was signed on the joint operation and production sharing of these fields, which envisages their development until the end of 2049.

The shareholders in ACG are BP (30.37%), SOCAR (31.65%), MOL Group (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), and ONGC Videsh Limited (OVL) (2.92%).

The agreement on the exploration, development, and production sharing of the Shah Deniz prospective area was signed on June 4, 1996. The PSA for Shah Deniz was ratified on October 17, 1996. The field, located 70 km southeast of Baku, was discovered in 1999.

The project participants are BP (operator – 29.99%), LUKoil (19.99%), TPAO (19%), NICO (10%), Southern Gas Corridor (16.02%), and MVM (5%).

The Absheron field was discovered by Azerbaijani geologists in the 1960s. The field is reported to contain 350 billion cubic meters of gas, making it the second-largest gas field in the Caspian Sea after Shah Deniz.

In 2009, a contract was signed between France's Total and the SOCAR for the Absheron field. On August 4, 2023, an agreement was signed with Abu Dhabi National Oil Company (ADNOC) for the acquisition of a 30% stake in the Absheron gas‑condensate field. After completion of the transaction, SOCAR and TotalEnergies will each hold 35% stakes.