In a statement, BP-Azerbaijan disclosed that BP, an Oil major, and SOCAR, the state energy firm of Azerbaijan, signed an agreement last Friday to build a new exploration platform for the three major oilfields of the South Caucasus nation.
The Azeri Central East (ACE) platform is the most recent phase of the giant Azeri-Chirag-Guneshli (ACG) oilfields of Azerbaijan. The company said that it is expected to produce approximately 100,000 barrels of oil per day and cost $6 billion to build.
The project is considered as one of the largest upstream investment decisions in Azerbaijan this year.
So far, the ACG fields have produced approximately 3.5 billion barrels of oil. They have the potential to yield another 3 billion barrels.
In a statement, senior analyst at Wood Mackenzie, Robert Morris, said that the current main aim of BP would be to maximise the extraction of remaining reserves,
He stated: “ACE is central to those plans, adding 100,000 barrels per day of production at peak in the mid-2020s.”
In 2017, Azerbaijan and BP extended their agreement to develop the ACG fields to 2050. The deal was dubbed by the Azeri government as “the contract of the century” when it was first signed in 1994. The arrangement was initially set to run until 2024.
Separately, SOCAR and its partners at the BP-led ACG consortium is planning to participate in a tender to acquire the stakes that are being sold by two of its members, Chevron and Exxon Mobil.
Rovnag Abdullayev, the President of SOCAR, informed reporters that the decision was made last Friday.