In the first quarter of this year, operations at the Azeri-Chirag-Guneshli (ACG) oil field received significant financial allocations, as reported by Azernews citing bp's quarterly report on Azerbaijan operations. Approximately $115 million was earmarked for operating costs, while $347 million was allocated for capital expenses, totaling $462 million for ACG activities during the quarter. This expenditure reflects a commitment to advancing operations in the region.
The report emphasizes the sustained and secure production from ACG throughout the first three months of 2024. With an average daily production of 339,000 barrels, equivalent to around 31 million barrels (4 million tons) for the quarter, production was sourced from multiple platforms including Chirag, Central Azeri, West Azeri, East Azeri, Deepwater Guneshli, and West Chirag.
At the end of the quarter, ACG operated 139 oil production wells, 43 water injection wells, and 8 gas injection wells, showcasing the robustness and operational efficiency of its infrastructure.
Furthermore, the report highlights the completion of three oil production wells and one water injector well during the first quarter, indicating ongoing efforts to enhance production capabilities and optimize reservoir management strategies within the ACG field.
The Azeri-Chirag-Guneshli (ACG) oil field, located in the Caspian Sea offshore Azerbaijan, is one of the largest and most significant oil-producing assets in the region. Discovered in the early 1990s, the field has been a key driver of Azerbaijan's oil and gas industry, contributing significantly to the country's economy and energy security.
Since its inception, the ACG field has been developed and operated by a consortium of international oil companies, with BP being the operator. The consortium includes leading energy companies such as Chevron, INPEX, Equinor, ExxonMobil, and SOCAR, Azerbaijan's state oil company.
Over the years, the ACG field has undergone extensive development and expansion efforts, involving the deployment of advanced drilling and production technologies to maximize oil recovery and optimize operational efficiency. The field encompasses multiple platforms and infrastructure installations spread across various sectors of the Caspian Sea.
As one of the flagship projects in Azerbaijan's energy portfolio, the ACG field has played a pivotal role in driving economic growth and attracting foreign investment to the country. Revenue generated from oil production at ACG has been instrumental in supporting infrastructure development, social programs, and economic diversification initiatives in Azerbaijan.
Against this backdrop, the recent financial allocations and operational achievements in the initial quarter of 2024 underscore the ongoing importance of the ACG field in Azerbaijan's oil and gas sector. The substantial investments in operating costs and capital expenses reflect the consortium's commitment to maintaining and enhancing production levels at ACG, ensuring continued revenue generation and economic prosperity for Azerbaijan.
Furthermore, the sustained production levels and operational efficiency demonstrated during the first quarter of 2024 highlight the ACG field's resilience and long-term viability as a key asset in Azerbaijan's energy landscape. With ongoing efforts to optimize reservoir management strategies and enhance production capabilities, the ACG field is poised to remain a cornerstone of Azerbaijan's oil and gas industry for years to come.
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