Current concession period expiration date of ACG field:2024
Exxon Azerbaijan joint venture partner:AIOC
Sustained productionMarch 29, 2016
Exxon Azerbaijan (a member of the ExxonMobil group of companies) has had a presence in Azerbaijan since 1994 and has an 8% equity share in the Azeri-Chirag-Guneshli (ACG) oilfield, operated by BP. Alistair Macleod, Exxon Azerbaijan’s country manager, speaks to TOGY about ACG’s development.
What efforts are being made by the operator and the other stakeholders to maintain production levels at the ACG oilfield?
In 2015, production from the ACG oilfield was at a similar level to 2014, following the installation of the West Chirag platform in 2014. Production platform reliability has been good and drilling performance has been better than planned. Additional wells have been drilled in 2015 to maximise production.In recent years, Azerbaijan International Operating Company (AIOC) and SOCAR have also been focused on the long-term future of ACG and carried out extensive development planning work. The production life of the field will extend far into this century and much longer than the current concession period that expires in 2024. The lifecycle of investments in the field is measured in decades, and AIOC has accordingly defined a comprehensive long-term plan for the field.
How has Exxon Azerbaijan been contributing to the management of ACG since the field came online?
Exxon Azerbaijan is an active joint venture partner in AIOC and is engaged with BP, who operates ACG on behalf of AIOC, across a broad range of areas. ExxonMobil’s first interest is in the integrity of the asset and the safety of the people, and it supports the operator in these areas. The Azerbaijan team, which is part of the Europe Caspian business unit, also brings in world-class technical experts who advise on areas such as geoscience, reservoir engineering, drilling and production technology.
How do the changing global energy landscape and low oil prices impact Azerbaijan’s hydrocarbons industry and the management of the ACG asset?
The current business environment is very challenging for all parts of the oil and gas industry. Cost management and maintaining a competitive process for all elements of AIOC business are extremely important for sustaining the contribution that ACG makes to the Azerbaijani economy. ExxonMobil Azerbaijan remains steadfast in meeting its commitments within AIOC and supporting the operator to ensure that the appropriate decisions are made to sustain the business.
How does the company contribute to the development of local capacity and expertise in Azerbaijan?
Globally, ExxonMobil is a large supporter of education. Exxon Azerbaijan is engaged with the student community in Azerbaijan through sponsorship of local university and student events such as the Baku Summer Energy School run by ADA University in partnership with SOCAR.
ExxonMobil supports events such as the 2015 inaugural Baku Society of Petroleum Engineers conference, which are effective at promoting the sharing of global technology ideas and experience that have potential application in the region. Examples of these include ExxonMobil papers on drilling performance management and well completion techniques that could be applicable in the ACG field.
Click here for more news and features from Azerbaijan
Read our latest insights on:
Nigeria as a major maritime hubINTERVIEW