BP, Lowering Costs by 17%, Achieves Growth of Oil Production from ACG

The production from the offshore oilfields block Azeri-Chirag-Gunashli (ACG) in the I half of 2016 amounted to 16 million tons, 0.3 million tons or 1.9% more than in the same period last year, a source at BP-Azerbaijan (operator of the ACG development) told Turan.

According to BP-Azerbaijan reports, the company in the I half of 2016 reduced the amount of the costs of the project ACG development in comparison with the same period last year by 16.8% or $ 220 million - to $ 1.088 billion.

‘Of this amount, the operating expenses for the ACG project in the reported period amounted to $ 260 million, while the capital expenses were $ 828 million,’ the source in the BP press service said.

Table of Oil Extraction from the ACG Contract Area

The average daily oil production on the contract area during the reported period amounted to 655,000 barrels per day, which is 2.2% more than in the same period last year (641,000 barrels).

* Participants in the project are: BP (35.78% - the operator), Chevron (11.27%), Exxon Mobil (8%), Indian ONGC (2.72%), Azerbaijan's SOCAR (11.65%), Japanese Inpex Corp. (10.96%) and Itochu Oil (4.3%), Norwegian Statoil (8.56%), and Turkish TPAO (6.75%).

The oil production from the Chirag field has been carried out from November 1997, from Central Azeri - from 13 February 2005, from Western Azeri – from December 30, 2005, from Eastern Azeri – from October 21, 2006, from Deepwater Gunashli – from the beginning of April 2008, and from Western Chirag – from January 29, 2014.    -12B--