The Azeri-Chirag-Gunashli (ACG) block of fields is the country's largest and strategically most important oil field complex, located in the Azerbaijani sector of the Caspian Sea. Initiated by an international consortium following the signing of a document on September 20, 1994, which went down in history as the "Contract of the Century," this project is the cornerstone of modern Azerbaijan's independent economy and global energy policy.
The block of fields is located approximately 120 kilometers east of Baku, with production taking place at sea depths ranging from 120 to 400 meters.
Under the new agreement (the "Contract of the New Century") signed in 2017 between the Government of Azerbaijan and international partners, the development period for the project has been extended until the end of 2049.
Indicator Data Operator BP (British Petroleum) Contract Term Extended to 2049 Main Export Route Baku-Tbilisi-Ceyhan (BTC) main export pipeline Active Production Platforms Chirag, Central Azeri, West Azeri, East Azeri, Deepwater Gunashli, West Chirag, Azeri Central East (ACE) Initial Reserves Over 1 billion tonnes (or about 7 billion barrels) of oilNote: In 2024, after the Norwegian company Equinor sold its stake to SOCAR and exited the project, the State Oil Company of Azerbaijan Republic's (SOCAR) participating interest in ACG increased significantly.
The ACG project is constantly being upgraded through new investments and technologies. The Azeri Central East (ACE) platform, representing the newest and most advanced phase of the project, plays a critical role in maintaining stable production.
Digitalization: ACE is the most highly technological and "smart" platform installed in the Caspian Sea. It can be largely controlled remotely from the shore—from the control center at the Sangachal terminal.
Production Stabilization: The ACE platform is capable of producing tens of thousands of barrels of additional oil daily to help slow the inevitable decline rates at naturally depleting fields.
ACG is not merely a commercial project; it is a serious geopolitical instrument:
Europe's Energy Security: Oil extracted from ACG is delivered via the BTC pipeline to the Mediterranean Sea (to the port of Ceyhan) and from there by tankers to European and global markets. This provides global markets with an alternative and reliable source of crude oil (the Azeri Light brand).
Macroeconomic Stability: Revenues from the sale of the project's profit oil are directed straight into the State Oil Fund of the Republic of Azerbaijan (SOFAZ). These funds ensure the formation of the country's strategic foreign exchange reserves, the financing of large-scale infrastructure projects (including the restoration of Karabakh), and the stability of the manat's exchange rate.
Baku 21° C
