Exploration and Production
Chevron holds a 10.3 percent nonoperated interest in the Azerbaijan International Operating Company. The Azerbaijan firm produces and develops offshore crude oil reserves in the Caspian Sea from the Azeri-Chirag-Gunashli (ACG) project. The project's three fields have been developed in phases. Original total production was 125,000 barrels per day in 1997. In 2008, AIOC's total daily crude oil production averaged 689,000 barrels (28,000 net).
The oil makes its way to market via the Baku-Tbilisi-Ceyhan (BTC) pipeline, which runs from Baku, Azerbaijan, to deepwater port facilities at Ceyhan, Turkey, on the Mediterranean Sea. AIOC also relies on its Western Route export pipeline.
From our office in the capital city of Baku, we support the joint venture with technical expertise in areas such as reservoir management, pipeline construction and subsea facilities.
The surge in oil exploration and production is a welcome development for Azerbaijan. One of the oldest oil-producing regions in the world, Azerbaijan experienced its peak production in the mid-1940s before it dropped dramatically in the post–World War II years. Continued production from the ACG project and the development of new fields in the Caspian Sea have revived Azerbaijan's position as a major oil-producing nation.
Progress continued in 2008 on the ACG crude oil project. First production from the ACG Phase III project, which is designed to develop the deepwater Gunashli sector, started second quarter 2008. Water injection into deepwater Gunashli also began in the second quarter 2008 via subsea injection wells. Total daily production of oil equivalent is expected to ramp up to more than 700,000 barrels per day by mid-2009.
Pipelines
Chevron holds an 8.9 percent interest in the BTC pipeline, which transports oil from the landlocked Caspian oil fields to the Mediterranean.
The 1,094-mile (1,762-km) underground pipeline crosses Azerbaijan, Georgia and Turkey, making it one of the world's longest. It includes 275 miles (443 km) in Azerbaijan and is supported by terminals at Sangachai, Azerbaijan, and Ceyhan, Turkey.
The BTC pipeline has an export capacity of 1.2 million barrels per day. The pipeline brings significant benefits to Azerbaijan and its neighbors, strengthening their economic links to the West.
The Western Route Export Pipeline, which is wholly owned by AIOC, runs 515 miles (829 km) from Baku, Azerbaijan, to the terminal at Supsa, Georgia, on the Black Sea and has a capacity of 145,000 barrels per day. As alternatives to the primary export pipelines, AIOC could use rail-tank cars that connect with a Georgian Black Sea port. AIOC also could use a northern pipeline route that connects to an existing pipeline system in Russia and extends to the Russian Black Sea port of Novorossiysk.
Marketing and Retail
Texaco-branded lubricants are available in Azerbaijan through a network of distributors.
Updated: March 2009