Oil Field Development in the Caspian Sea
We are carrying out development and production in the ACG field in the Caspian Sea region of Azerbaijan.
1. Summary of the ACG Field
|Production platform (Courtesy of BP)|
Our subsidiary, ITOCHU Oil Exploration (Azerbaijan) Inc., acquired a 3.9205% interest in the ACG field in 1996. In August 2010, the company acquired an additional interest in the project, increasing its total share to 4.2986%.The Production Sharing Agreement (“PSA”) for the field was extended in September 2017 （effective 1 January 2018）. Our share is 3.65% under the extended PSA.
The ACG Field is located in the Caspian Sea in Azerbaijan and covers an area of 432.4km2. The Deep Water Gunashli complex is located about 100km east of the country's capital city, Baku, and has a water depth of approx. 175m. The ACG Field consists of 3 oil fields, Azeri, Chirag, and Gunashli. Average daily production from the Field in 2017 was approximately 588,000 barrels.
In addition to ITOCHU Oil Exploration, parties holding a stake in the field are BP (Operator, 30.37%), SOCAR (25.00%), Chevron (9.57%), INPEX (9.31%), Statoil (7.27%), ExxonMobil (6.79%), TPAO (5.73%), and ONGC Videsh Limited (2.31%).
2. BTC Pipeline
|BTC Pipeline Route|
The BTC Pipeline is a crude oil pipeline running 1,768km from Baku, Azerbaijan, through Tbilisi, Georgia, to Ceyhan, Turkey, on the coast of the Mediterranean Sea, with a throughput capacity of 1.2 million barrels of oil per day. In order to secure an outlet for crude oil produced from ACG, ITOCHU, through its subsidiary ITOCHU Oil Exploration (BTC) Inc., holds a 3.4% share of BTC Co., the company that built and operates the BTC Pipeline.
3. ACG Fields started additional production (Chirag Oil Project)
ITOCHU commenced additional oil production from both the existing Chirag oil field and the deepwater portion of the Gunashli oil field, including the shallow parts in January 2014. The additional oil development , sanctioned in 2010, is called Chirag Oil Project (COP) and started production from the sixth drilling platform in ACG Fields. The crude oil produced from the fields in the Caspian Sea is shipped via BTC Pipeline, in which ITOCHU invests, to a Turkish port for seaborne export. With a total investment of around US$6.0 billion, this project involved construction of a new production platform and driling of additional wells to produce crude oil at a rate of up to 183,000 barrels per day,. ITOCHU continues to take part in the development of ACG project to raise its value.