Phase 1 Project

completed

The Azeri-Chirag-Gunashli (ACG) full-field development, led by BP as project operator, contain an estimated 5.4 billion bbls of recoverable crude oil reserves. The fields will be developed in four separate phases, the first of which, the Early Oil project, was financed by IFC and EBRD in 1998 and is producing approximately 130,000 barrels of oil a day. The second stage, called Phase 1, is currently being considered for financing by IFC and EBRD in parallel with the BTC project. Phase 2 was sanctioned in September of 2002, while Phase 3 is in the project development stage.At present, five out of nine international participants in the ACG oil fields development under the Production Sharing Agreement (PSA) approached IFC/EBRD for the Phase 1 financing. The total project cost for the Phase 1 project is estimated at US$3.2 billion. Following the completion of all of the phases in 2009, the ACG field peak production is expected to be over one million barrels of oil per day based on proved plus probable reserve estimates. The Phase 1 project involves the construction of a production platform and compression and water injection platform in the Central Azeri Field offshore Azerbaijan, installation of sub-sea oil and gas pipelines and expansion of the Sangachal terminal near Baku in Azerbaijan.