BP to boost gas output in Azerbaijan with second deep-gas well by 2026

BP is set to expand its deep-gas production operations in Azerbaijan by commissioning a second well at the Azeri-Chirag-Gunashli (ACG) block in May 2026, according to the company’s regional president for Azerbaijan, Georgia, and Türkiye, Gary Jones.

In an interview with Platts, Jones confirmed that the first well is expected to begin gas production by the end of 2025, per Caliber.Az.

The ACG block, traditionally known for oil output, is now being explored for its vast natural gas potential, with estimated free gas reserves reaching 4 trillion cubic metres. These additional resources, he noted, will help sustain and bolster gas exports from the Shah Deniz field, which already plays a crucial role in regional energy supply.

BP’s strategic goal is to broaden its resource base across the wider Caspian region and foster deeper energy cooperation with neighbouring countries. Among the projects under priority consideration are the Shafag-Asiman exploration area and deep-gas ventures across the Azerbaijan-Kazakhstan-Kyrgyzstan-Turkmenistan (AKT) corridor. In particular, BP is evaluating opportunities in Turkmenistan, where Jones underscored the presence of “huge reserves” of natural gas. The company is also pursuing engagement in Uzbekistan, having signed a memorandum of cooperation with SOCAR, Azerbaijan’s state oil company.

The expansion of deep-gas production at ACG was made possible following the September 2024 revision of the Production Sharing Agreement (PSA) initially signed in 2017. The amendment, endorsed by the shareholders of the Azerbaijan-Caspian-Georgia pipeline project, granted permission for gas extraction from deep reservoirs, marking a significant shift in the long-term development strategy of the ACG field.

BP’s operations in Azerbaijan date back to 1992, shortly after the country gained independence. The company quickly became a central figure in the development of Azerbaijan’s energy sector and led the historic “Contract of the Century” signed in 1994. That agreement brought together Azerbaijan and a consortium of major international energy companies to develop the ACG oil field, which has remained one of the Caspian region’s most productive assets.

BP further cemented its role in the country’s energy landscape with the 2006 commissioning of the Baku-Tbilisi-Ceyhan (BTC) pipeline. This vital export route connected the Caspian Sea to the Mediterranean Sea via Georgia and Türkiye, allowing Azerbaijani oil to reach international markets without passing through Russia or Iran.

BP also spearheaded the development of the Shah Deniz gas field, which feeds into the Southern Gas Corridor — a critical infrastructure network supplying Azerbaijani natural gas to Europe and enhancing regional energy diversification and security.

Today, BP stands as Azerbaijan’s largest foreign investor and a cornerstone of the country’s international energy partnerships. In addition to its oil and gas operations, BP has begun exploring renewable energy projects in Azerbaijan, reflecting a growing alignment with the global transition to a low-carbon economy.

The company’s continued presence has played a pivotal role in shaping the modern energy infrastructure of Azerbaijan and strengthening the country’s economic resilience and international profile.

By Tamilla Hasanova