How does deep gas production at ACG differ from previous operations on the field?

Historically, ACG has been operated strictly as a crude oil development where associated gas was either reinjected for reservoir pressure maintenance or delivered to regional grids as a secondary product. This new development marks the first time that BP is deliberately tapping independent, non-associated natural gas reservoirs lying deep beneath the field's oil formations.

Who are the commercial partners involved in the ACG project?

The ACG development is operated by BP (30.37%) on behalf of a consortium that includes the State Oil Company of Azerbaijan Republic (SOCAR), MOL Group, INPEX, Equinor, ExxonMobil, Türkiye Petrolleri (TPAO), ITOCHU, and ONGC Videsh. These partners share the production output and development costs relative to their equity stakes.

What is the strategic significance of this project for European energy security?

The incremental production supports the Southern Gas Corridor, the primary pipeline route bringing non-Russian gas from the Caspian into Southern and Central Europe. By expanding upstream production sources beyond Shah Deniz, Azerbaijan strengthens its capacity to fulfill and potentially expand long-term gas supply agreements with European buyers.

Rigzone · June 2, 2026 (Jun 2) · 1 min read

BP Starts Production at Caspian Gas Project

Analysis

AI-assisted analysis · reviewed by Yuri Kan

BP and its partners have achieved first commercial natural gas production from the deepwater non-associated gas reservoirs beneath the giant Azeri-Chirag-Gunashli (ACG) complex in the Caspian Sea. This development unlocks a previously unexploited hydrocarbon layer within Azerbaijan's primary oil-producing basin, bolstering the country's domestic gas supply and export capacity. The milestone underscores the ongoing commercial evolution of mature Caspian fields through advanced sub-surface targeting of deeper reservoir intervals.

Key Facts

BP has officially commenced the first-ever commercial non-associated gas production from the giant Azeri-Chirag-Gunashli (ACG) field located in the Azerbaijani sector of the Caspian Sea.
The project targets deep-lying gas reservoirs situated stratigraphically beneath the mature oil-producing formations of the main ACG contract area.
Initial production is being routed from the West Chirag platform via an existing production well recompleted to test and tap deeper gas zones.
BP serves as the primary operator of the ACG project with an operating stake of approximately 30.37%, alongside partners including SOCAR, MOL, INPEX, Equinor, ExxonMobil, TPAO, ITOCHU, and ONGC Videsh.
The produced volumes will primarily serve Azerbaijan's expanding regional gas pipeline architecture and help meet long-term export commitments to European and regional markets.
The ACG field complex has historically produced over 4 billion barrels of crude oil since commercial operations commenced in the late 1990s.

Background & Context

The Azeri-Chirag-Gunashli complex has served as the backbone of Azerbaijan's oil economy for nearly three decades, primarily managed under a production-sharing agreement extending to 2049. While the field has historically been known for massive crude production, significant volumes of deep gas remained undeveloped beneath the producing oil reservoirs. In response to rising European demand for Caspian gas via the Southern Gas Corridor, BP and state-owned SOCAR prioritized drilling into these deeper strata to augment supplies independently of the nearby Shah Deniz gas field.

Market Impact

This startup diversifies Azerbaijan's gas extraction portfolio beyond the primary Shah Deniz field, adding operational resilience to its upstream supply chain. By utilizing existing topside and subsea infrastructure from the ACG asset, BP significantly minimizes capital expenditure and fast-tracks the commercialization of Caspian gas reserves. For regional and European off-takers, the incremental gas provides additional reliability for the Trans Adriatic Pipeline (TAP) and wider Southern Gas Corridor throughput. Furthermore, it demonstrates the technical feasibility of monetizing deep gas layers across other legacy oil fields in the broader Caspian basin.

What to Watch

Operators will monitor production data and pressure behavior from the initial West Chirag well to assess long-term reservoir dynamics across the deep gas formation. Pending these reservoir performance evaluations, the ACG partnership is expected to greenlight additional development drilling across further platforms to scale up commercial output. Market analysts will watch for SOCAR and BP's updated annual gas export projections to evaluate the overall contribution of ACG deep gas to European supply targets.

Frequently Asked Questions

How does deep gas production at ACG differ from previous operations on the field?: Historically, ACG has been operated strictly as a crude oil development where associated gas was either reinjected for reservoir pressure maintenance or delivered to regional grids as a secondary product. This new development marks the first time that BP is deliberately tapping independent, non-associated natural gas reservoirs lying deep beneath the field's oil formations.
Who are the commercial partners involved in the ACG project?: The ACG development is operated by BP (30.37%) on behalf of a consortium that includes the State Oil Company of Azerbaijan Republic (SOCAR), MOL Group, INPEX, Equinor, ExxonMobil, Türkiye Petrolleri (TPAO), ITOCHU, and ONGC Videsh. These partners share the production output and development costs relative to their equity stakes.
What is the strategic significance of this project for European energy security?: The incremental production supports the Southern Gas Corridor, the primary pipeline route bringing non-Russian gas from the Caspian into Southern and Central Europe. By expanding upstream production sources beyond Shah Deniz, Azerbaijan strengthens its capacity to fulfill and potentially expand long-term gas supply agreements with European buyers.

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