ACG Capital Expenditures Drop Nearly 28%
Azerbaijan’s ACG Oil Fields: Economic Update for Q1 2025
In the first quarter of 2025, substantial financial activity centered on the Azeri-Chirag and Deepwater Gunashli (ACG) fields in Azerbaijan’s section of the Caspian Sea. Operating expenses reached approximately $115 million, while capital expenditures amounted to nearly $251 million, as reported by BP-Azerbaijan.
Despite maintaining operating expenses at levels comparable to the previous year, capital expenditures demonstrated a significant decline, dropping by $96 million, or 27.7%. This shift indicates a potential shift in strategy or a response to market conditions affecting investment in the ACG fields.
The ACG block stands as Azerbaijan’s largest oil field complex, with its first production sharing agreement established on September 20, 1994. A renewed agreement, signed on September 14, 2017, allows for continued joint operation and production sharing, extending the development timeline until the end of 2049.
Shareholders in the ACG venture include a mix of international and local companies. BP holds a 30.37% stake, followed closely by SOCAR at 31.65%. Other shareholders include MOL (9.57%), INPEX (9.31%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), and ONGC Videsh Limited (OVL) at 2.92%.
As a vital component of Azerbaijan’s economy, the ACG fields continue to play a critical role in the nation’s oil production landscape, influencing both local and international markets. The recent financial figures may signal evolving strategies within this key sector as stakeholders navigate the complex dynamics of global energy demands.
