BP may start extracting gas from deep-seated reserves at ACG

BP plans to begin extracting gas from deep-seated reserves at the Azeri-Chirag-Gunashli (ACG) block of fields this summer, BP Regional President for Azerbaijan, Georgia, and Türkiye Giovanni Cristofoli said at a press conference on March 6, Report informs.

"We plan to begin gas extraction from deep-seated formations at ACG this summer," Cristofoli noted.

On September 20, 2024, in Baku, the shareholders of the ACG project signed the second annex to the current PSA, dated September 14, 2017, providing for gas production from deep-seated formations within this block. According to the document, the Azeri-Chirag-Gunashli block of fields provides for exploration, evaluation, development, and production of free natural gas reserves.

The annex will remain in effect, just like the PSA, until 2049. The parties' equity participation in the deep-gas project from the ACG block corresponds to the project shareholders' shares under the current contract.

Free natural gas reserves in the block's deep-seated formations are estimated at 4 trillion cubic feet.

During the first stage, deep-seated gas production from the ACG block will be approximately 0.5 billion cubic meters per year. Gas from the first appraisal well will be sold to the State Oil Company of Azerbaijan.