BP’s US$6bn Azeri Central East project gets the nod
BP and partners have taken a final investment decision (FID) on the Azeri Central East (ACE) platform, the latest phase at Azerbaijan's super-giant Azeri-Chirag-Guneshli (ACG) oilfield. The US$6 billion project will be one of the biggest upstream FIDs of the year.
Robert Morris, senior analyst, Caspian upstream, said: “Production at Azerbaijan's oil elephant may have peaked back in 2010, but with 3 billion barrels yet to be produced it is just halfway through its long life.
“The operator's core objective is managing that long decline to maximise recovery and remaining value. ACE is central to those plans, adding 100,000 barrels per day of production at peak in the mid-2020s.”
BP and Azerbaijan are intimately connected: BP operates around 80% of the country’s production, and Azerbaijan will be the fifth largest biggest contributor to production in BP’s global portfolio when ACE achieves first oil in 2023, he said.
Mr Morris added: “Complex logistics mean many projects in the Caspian cost more and take longer than elsewhere. However, BP's sharp delivery of Shah Deniz Phase Two, which started on schedule and under budget last year, gives us reason for optimism.
“Another success would be a shot in the arm for other players contemplating energy investments in the region.”