BAKU, Azerbaijan, June 2. Azeri-Chirag-Gunashli
(ACG) has become a strategic oil and gas infrastructure project,
SOCAR Vice President Babak Huseynov said at a panel discussion held
on the second day of the Baku Energy Week, Trend reports.
According to him, the main challenges facing the upstream sector
of the oil and gas industry are changing.
"Previously, the main source of oil and gas production was the
discovery of new fields, the development of new regions, and the
implementation of large, especially offshore, projects. Today, the
main issue is not only new discoveries. The main task ahead is to
extract more value from existing fields, use existing
infrastructure efficiently, and do all this faster," he noted.
Huseynov pointed out that even a 1% growth in the recovery
factor of production in existing fields can make a significant
contribution to meeting energy demand for many years.
He stressed that this approach doesn't diminish the importance
of exploration, as new discoveries are important in terms of
replenishment of reserves. However, the industry is increasingly
focusing on maximizing the efficiency of existing assets.
The SOCAR Vice President cited the ACG project as an example in
this regard.
"Just yesterday, we celebrated an important milestone in the
production of non-associated gas from ACG. ACG has been recognized
as one of the largest oil fields in the world for the past 30
years. However, we no longer view this project solely as an oil
field. ACG is today a strategic energy infrastructure project with
both oil and gas potential. There are huge resources under the
project, and we are extremely encouraged by the development
programs implemented within the framework of the partnership with
bp," he added.
Huseynov said that the main priorities in the development of the
Absheron gas-condensate field, which holds an important place in
Azerbaijan's energy sector, are to obtain the first gas more
quickly, increase the final production coefficient, simplify
project solutions, and maintain capital discipline.
"It's important that these projects are economically viable for
both our partners and Azerbaijan. Therefore, they should be
implemented simply, quickly, and on the basis of financial
discipline," he noted.
The SOCAR official noted that the development of the Karabakh
field demonstrates a different development model.
According to him, the project is being implemented using the
capabilities of the existing infrastructure, and this approach is
known as the "infrastructure-based development" model.
"The Karabakh project uses flexible subsea connection solutions.
Integration into the existing infrastructure shortens the project
implementation period and allows for a faster start of production.
This infrastructure is one of the most valuable assets of the
energy sector of Azerbaijan," Huseynov emphasized.
