BP and SOCAR sign new Azeri oil deal

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Reuters
ID: 
1555703806307163300
Fri, 2019-04-19 22:57

BAKU: Oil major BP and Azerbaijan’s state energy company SOCAR
signed an agreement on Friday to build a new exploration platform
for the South Caucasus nation’s three major oilfields,
BP-Azerbaijan said in a statement.
The Azeri Central East (ACE) platform, the latest phase of
Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) oilfields
extension program, is expected to produce 100,000 barrels of oil a
day and cost $6 billion to build, the company said.
The project is one of the biggest upstream investment decisions to
have been signed in Azerbaijan so far this year.
The ACG fields, which to date have produced around 3.5 billion
barrels of oil, are estimated to have the potential to yield
another 3 billion barrels.
BP’s main aim now would be to maximize the extraction of
remaining reserves, Robert Morris, senior analyst at Wood
Mackenzie, said in a statement.
“ACE is central to those plans, adding 100,000 barrels per day of
production at peak in the mid-2020s,” he said.
BP and the government of Azerbaijan extended their agreement to
continue developing the ACG fields until 2050 in a major deal in
2017.
Separately, SOCAR and its partners at the BP-led ACG consortium
plan to participate in a tender to acquire stakes being sold by two
of its members, ExxonMobil and Chevron.
SOCAR President Rovnag Abdullayev made the announcement to
reporters following a meeting of senior SOCAR figures on
Friday.

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BP and SOCAR sign new Azeri oil deal