MOL signed agreement to develop gas reserves in Azerbaijan  

Monday, September 23 2024

Fossil Energy – ACG Field

MOL Group and its Joint Venture (JV) partners signed commercial agreements for the development of gas reserves in Azerbaijan.

After SOCAR and BP, MOL is the third largest shareholder in the giant ACG field, where non-associated gas reservoirs were identified beneath and above the producing oil reservoirs.

The partners have now agreed on the development and commercial exploitation of these reserves. MOL has also signed a Memorandum of Understanding with SOCAR to evaluate further potential cooperation opportunities in the area of hydrocarbon exploration in Azerbaijan.

The commercial agreements amend the existing ACG production sharing agreement (PSA) framework, enabling the parties to progress the exploration, appraisal, development of, and production from the gas reservoirs of the ACG field. ACG non-associated gas resources are believed to be significant, with up to 4 trillion cubic feet (ca. 112 billion cubic meters) in place.

Drilling of the initial producing well has already started from the West Chirag Platform, with first gas expected in 2025. The well is important as it will deliver appraisal through production which is expected to underpin future development plans.

The signing ceremony was held in Baku on the 30th anniversary of the signing of the ACG Production Sharing Agreement in 1994.

In addition, MOL Group Chairman and CEO Zsolt Hernádi and SOCAR CEO Rovshan Najaf signed a Memorandum of Understanding in Baku to evaluate potential exploration opportunities in the Shamakhi-Gobustan region. Under the Memorandum of Understanding, MOL Group expressed its intention to contribute its experience, technical and commercial knowledge, and financial resources to further develop Azerbaijan’s hydrocarbon extraction.