BP, along with its project partners, is set to invest $6bn in the Azeri Central East (ACE) project offshore Azerbaijan.
The ACE project represents the next stage of the development of the Azeri-Chirag-Deepwater Gunashli (ACG) oilfield complex in the Caspian Sea.
The investment decision follows an agreement with the partners to extend the ACG production sharing agreement (PSA) to 2049.
BP operates the ACG PSA with a 30.37% stake. The other partners are SOCAR/AzACG (25%), Chevron (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%) and ONGC Videsh (2.31%).
The ACE project encompasses the construction of a new offshore platform and associated facilities to process up to 100,000 barrels of oil per day (bopd). Situated in a water depth of approximately 140m, the ACE project lies between the existing Central Azeri and East Azeri platforms.
As part of the project works, new infield pipelines will be laid to transport oil and gas from the ACE platform to the existing ACG Phase 2 export pipelines and subsequently to the onshore Sangachal Terminal.
Construction activities are scheduled to commence in 2019 and will continue through mid-2022. The platform is expected to become online in 2023 and will produce 300 million barrels of oil throughout its life.
BP chief executive Bob Dudley said: “Working together over the past 25 years, this remarkable partnership has turned these world-class assets into tremendous benefits for the people of Azerbaijan.
“The ACE extension builds on that legacy and helps ensure that the next quarter century will be just as bright.”
Following the signing of the original PSA in 1994, more than $36bn has been invested for the development of the ACG area.