BP Launches Trillion Cubic Feet Gas Project in Azerbaijan and Takes Over Babek Field

en.Wedoany.com Reported - British Petroleum has officially commenced commercial production of natural gas from the deep reservoirs of the Azeri-Chirag-Gunashli (ACG) block, Azerbaijan's largest oil field, and is moving to take over operations of the giant offshore Babek gas field to expand its regional footprint.

Energy market observers believe this dual objective will significantly deepen Western energy integration in the Caspian Sea and strengthen Azerbaijan's role as a key alternative gas supplier to Europe. The start of non-associated gas (NAG) production marks a historic turning point for the ACG field—it is the first time free gas has been commercially extracted from reservoirs both above and below the main oil zone. The NAG reservoirs in this block are highly economically valuable, with estimated recoverable gas reserves of 4 to 6 trillion cubic feet. The extracted gas and condensate will be directly transported via existing subsea pipelines to the onshore Sangachal terminal to maximize operational efficiency.

Alongside expanding existing assets, BP is spinning off the Babek offshore gas field from the state-owned sector of the State Oil Company of Azerbaijan Republic (SOCAR) into an independent project. The Babek field is a premier asset, estimated to hold 400 billion cubic meters of gas and 80 million tons of condensate. This move aligns with BP's goal of increasing its regional upstream production to 250,000 barrels of oil equivalent per day by 2027.

Gas from the ACG block will be exported to Europe. Azerbaijan currently supplies about 5% of the EU's total natural gas demand. As Europe continues to reduce its reliance on Russian fossil fuels, Azerbaijani gas delivered via the Southern Gas Corridor—a 3,500-kilometer pipeline network stretching from the Caspian Sea to Southern Europe—has become a vital pillar of European energy security. This corridor transports gas directly from Azerbaijan's Shah Deniz field to European markets, supplying at least 10 EU member states, totaling 12 European countries.

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