bp produces first commercial gas from ACG project in the Caspian Sea

bp has started non-associated gas (NAG) production from the Azeri-Chirag-Gunashli (ACG) oilfield development in the Azerbaijani sector of the Caspian Sea.

The initial NAG well, drilled from the existing West Chirag platform, will also provide reservoir and flow data, supporting appraisal of the resources for a future full-field gas development.

ACG is thought to hold at least 4 Tcf of recoverable gas reserves and potentially up to 6 Tcf.

The initial producer well drilled last year into two NAG reservoirs, the shallower Qirmaki Upper Sand and the deeper Qirmaki Lower Sand.

Both are beneath the producing oil reservoirs. The well confirmed gas in the Qirmaki Upper Sand reservoir and encountered high-pressure gas in the Qirmaki Lower Sand reservoir.

Current operations are focused on the lower sand reservoir for a period of well and reservoir testing.

Produced gas and condensate from the well will be sent to the onshore Sangachal terminal via existing ACG offshore infrastructure.

The NAG reservoirs are geological formations located both beneath and above the currently producing oil reservoirs. They were not initially included in the existing ACG production sharing agreement but have since been accessible under a recent addendum that applies until the end of the agreement's current term in 2049.

Future exploration and appraisal of the NAG reservoirs could lead potentially to investments of billions of dollars in the full-field development of NAG reservoirs, bp added.

The participating interests of the ACG co-venturers in the NAG project are identical to those for the existing ACG production sharing agreement: bp (operator, 30.37%), SOCAR (35.3%), MOL (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%), and ONGC Videsh (2.92%).