MOL Group and its partners have 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.
“Today is an important milestone for MOL Group as after years of developing and producing oil fields in Azerbaijan, we extend our footprint by entering into gas reservoir development. This is thanks to the outstanding cooperation with SOCAR and the partners of the ACG project,” said Zsolt Hernádi, chairman and CEO of the MOL Group.
MOL signs major agreement in Azerbaijan to develop gas reserves
