Industry and Energy

Home page

Industry and Energy

Volume of gas transmitted to Azerbaijani state from ACG increased by 25% last year

13 February 2025 12:10 (UTC +04:00)

Last year, 2.5 billion cubic meters of associated gas were transmitted to the Azerbaijani state, mainly to SOCAR, through the Sangachal terminal and the platform at "Neft Daşları" from the Azeri-Chirag-Gunashli (ACG) oil and gas fields block, which is 25% more compared to the previous year, APA-Economics reports citing BP’s report on its activities in Azerbaijan for the past year.

According to the document, during the reporting period, ACG delivered an average of 7 million cubic meters of gas per day to SOCAR.

"The remaining portion of the produced associated gas was re-injected into the collector to maintain pressure," the report states.

Note that a portion of the associated gas produced at ACG is provided to SOCAR as free of charge.

Recall that the production sharing at ACG is as follows: BP – 30.37% (operator), AzACG (SOCAR) – 25.00%, MOL – 9.57%, Inrex – 9.31%, Equinor (formerly Statoil) – 7.27%, ExxonMobil – 6.79%, TPAO – 5.73%, Itochu" – 3.65%, and ONGC Videsh Ltd. (OVL) – 2.31%. The agreement between the parties was valid for 30 years (it was supposed to end in 2024). However, on September 14, 2017, the Azerbaijani government and SOCAR, together with international partner companies, signed a revised and amended agreement on the joint development and Production Sharing Agreement of ACG. The new contract, covering the development of ACG until 2050, will significantly increase the development potential of the block until the middle of the century.