Exploration and Production
Chevron increased its nonoperated working interest in the Azerbaijan International Operating Company from 10.3 percent to 11.3 percent in the third quarter of 2010. The AIOC produces and develops offshore crude oil reserves in the Caspian Sea from the Azeri-Chirag-Gunashli (ACG) Field. The field has been developed in phases. Original total production was 125,000 barrels per day in 1997. In 2010, the AIOC's total daily crude oil production averaged 822,000 barrels (28,000 net).
The oil makes its way to market via the Baku-Tbilisi-Ceyhan (BTC) Pipeline, which runs from Baku, Azerbaijan, through Georgia to deepwater port facilities at Ceyhan, Turkey, on the Mediterranean Sea. The AIOC also relies on its Western Route Export Pipeline to transport its production.
We support the joint venture with technical expertise in areas such as reservoir management, well completions, pipeline construction and subsea facilities.
The current oil exploration and production is a welcome development for Azerbaijan. One of the oldest oil-producing regions in the world, Azerbaijan experienced its first production peak in the mid-1940s before it dropped dramatically after World War II. 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.
The ACG Chirag Oil Project is designed to further develop the Chirag and deepwater Gunashli fields. The final investment decision on the $6 billion project was made in March 2010. Production is scheduled to begin in 2013.
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 longer systems. It includes 275 miles (443 km) in Azerbaijan and is supported by terminals in Sangachal, 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 owned and operated by the AIOC, runs 515 miles (829 km) from Baku, Azerbaijan, to the terminal in Supsa, Georgia, on the Black Sea. As alternatives to the primary export pipelines, the AIOC could use rail tank cars that connect with a Georgian Black Sea port. The 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® lubricants are available in Azerbaijan through our authorized distributor.
Updated: March 2011
Cautionary Statement