In September 2017, a 30-year Production Sharing Agreement (PSA) for Azeri Chirag and Deep Water Gunashli (ACG) oil field that was signed in September 1994 was extended for another 25 years, until the end of 2049. Equinor has a 7.27% interest in the extended ACG PSA. BP is the operator of ACG.
The ACG field is located 100 kilometers east of Baku in water depths ranging from 125-180 meters. The development is based on fixed platforms and subsea injection technology. BP currently estimates total recoverable reserves in ACG over the period of extended PSA (2018-2049) at ca 3 billion barrels of oil. ACG crude oil is sent to Sangachal Terminal, a hub with capacity of 1.2 million barrels, where oil is processed prior to export.
Baku-Tbilisi-Ceyhan (BTC) oil export pipeline is the main export rout for the ACG oil. Equinor has an 8,71% interest in BTC project. BTC pipeline passes Azerbaijan, Georgia and Turkey, connecting the Caspian with the Mediterranean Sea. Pipeline length is 1768 km: 443 km in Azerbaijan, 249 km in Georgia and 1076 km in Turkey. Host government agreements with the governments of three countries have been signed in 2003. The agreements have a term of 40 years from the date of first shipment of oil through BTC, which was in 2006. Current BTC throughput including ACG oil is ca 650 million barrels per day. BTC overall capacity is around 1 million barrels per day.
On 30 May 2018 Equinor and SOCAR signed a Risk Service Agreement related to the appraisal and development of the Karabagh oilfield and a Production Sharing Agreement for the Ashrafi-Dan-Ulduzu-Aypara (ADUA) area in the Caspian Sea. Equinor and SOCAR hold equal shares in both projects.
The Karabagh oilfield is located 120 kilometres east of Baku, close to the SOCAR operated Shallow Water Gunashli (SWG) field and the BP operated Azeri-Chirag-Gunashli (ACG) field. In December 2019, Equinor started drilling the KPS-4 appraisal in water depth of approximately 180 meters. In March 2020, Equinor and SOCAR confirmed oil discovery in the Karabagh field. To operate the licence, Equinor and SOCAR established a 50-50 joint operating company.
The ADUA exploration area is located around 100-110 kilometres north-east of Baku. In 2019, Equinor conducted a 2D-3D seismic study in the prospect area. The data will be processed, interpreted and evaluated during 2020.