- Jul 11, 2023, 12:00 PM CDT
Despite the discovery, boosting exports further will require significant investments to install new compressors in the pipeline system.Azerbaijan's promise to double its annual gas exports to Europe by 2027 may be a step closer to realization with the news that BP has found new gas reservoirs beneath its existing Azeri–Chirag–Gunashli oil field in the Caspian Sea.
BP's vice president for the Caspian region, communications, and external affairs, Bakhtiyar Aslanbeyli,that the company was in talks with Azerbaijan's state oil company, SOCAR, over technical and commercial issues.Separately, the company confirmed that the new gas reserves it has found are not covered by the existing commercial agreement it has for the ACG oil field and that producing the gas will require a new agreement with Baku.
BP's confirmation that gas from the new reserves won't be re-injected means that the new gas will also be piped onshore and so could be used to boost Azerbaijan's exports to Europe. Russia's invasion of Ukraine last year followed by the halting of the bulk of Russia's gas exports to Europe, has again boosted interest in Azerbaijani gas.
The delay in securing the investment is due in part to questions over whether enough gas will be available to make the expansion commercially viable, doubts that BP's newly announced discovery should help allay. BP is currently installing a new oil production platform on the ACG oil field and has confirmed that this will also produce gas some of which could be piped onshore.