The international joint venture (JV) partners, led by BP as the operator, have signed key commercial agreements to develop gas reserves at the vast Azeri-Chirag-Gunashli (ACG) gas field, located offshore Azerbaijan.
In addition to BP and the State Oil Company of the Republic of Azerbaijan (SOCAR), MOL, as the third-largest shareholder in the ACG field, is playing a critical role in the project. The field contains significant non-associated gas (NAG) reservoirs located both beneath and above the oil-producing layers.
The JV partners have now finalized plans for the development and commercial utilization of these gas reserves.
MOL has also signed a Memorandum of Understanding (MoU) with SOCAR to explore additional opportunities for collaboration in hydrocarbon exploration in Azerbaijan.
The newly signed agreements modify the existing ACG Production Sharing Agreement (PSA) framework, allowing for the advancement of exploration, appraisal, and production of the gas reservoirs at the ACG field. These NAG resources are estimated to hold as much as 4 trillion cubic feet (112 billion cubic meters) of gas in place.
Drilling of the first production well has already commenced from the West Chirag Platform, with the initial gas output expected by 2025. This well is particularly important, as it will not only produce gas but also provide critical appraisal data to inform future development plans.
In addition, MOL Group Chairman and CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf have signed an MoU in Baku to assess potential exploration projects in the Shamakhi-Gobustan region. Under this agreement, MOL Group intends to leverage its expertise, technical and commercial knowledge, and financial resources to further enhance Azerbaijan’s hydrocarbon development efforts.
“Today marks a significant milestone for MOL Group. After years of developing and producing oil fields in Azerbaijan, we are now expanding into gas reservoir development, thanks to the exceptional cooperation with SOCAR and our ACG project partners,” said Zsolt Hernádi, Chairman and CEO of MOL Group.
The ACG joint venture partners include BP (30.37%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), and ONGC Videsh (2.31%).