highlights of operations
Through wholly owned subsidiary Chevron Khazar, Ltd., Chevron has important pipeline and oil production investments in Azerbaijan and, therefore, strong ties to the nation’s economy.
Our work in Azerbaijan began in 1994, when the company obtained an interest in the Azerbaijan International Operating Company (AIOC), which produces and develops offshore crude oil reserves from the Azeri-Chirag-Gunashli (ACG) project in the Caspian Sea.
Chevron is a partner in the Baku-Tbilisi-Ceyhan (BTC) Pipeline, which transports oil from Baku, Azerbaijan, through Georgia to deepwater port facilities at Ceyhan, Turkey, on the Mediterranean Sea. The pipeline delivered its first cargo of oil in 2006.
Chevron and the AIOC invest in the training and development of local staff. About 90 percent of all Chevron employees, supervisors and managers in Azerbaijan are Azerbaijani nationals.
exploration and production
Chevron has a 9.6 percent nonoperated interest in the AIOC and the crude oil production from the ACG fields. Oil production at the fields began in 1997 and has been developed in phases. In 2019, average net daily production was 18,000 barrels of crude oil and 10 million cubic feet of natural gas.
We support the joint venture with technical expertise in areas such as reservoir management, well completions, pipeline construction and subsea facilities.
Azerbaijan has a long history of oil production. The nation had its first production peak in the mid-1940s and then experienced a dramatic decline 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 deepwater ACG Chirag Oil Project has further developed the Chirag and Gunashli fields. The single, integrated 48-slot drilling and processing platform sits between the Chirag platform and the deepwater Gunashli offshore complex. The wells target the Pereriv and Balakhany reservoirs.
In November 2019, Chevron signed an agreement to sell its interests in the AIOC and the BTC pipeline affiliate. The sale is expected to close in the first half of 2020.
Chevron has an 8.9 percent interest in the BTC pipeline affiliate, which transports the majority of ACG production from Baku, Azerbaijan, through Georgia to the Mediterranean deepwater port of Ceyhan, Turkey.
AIOC production is exported primarily via the BTC Pipeline and the Western Route Export Pipeline (WREP), which is operated by the AIOC. The 1,099-mile (1,768-km) BTC Pipeline has a capacity of 1 million barrels per day. The WREP runs 515 miles (829 km) from Baku, Azerbaijan, to the terminal at Supsa, Georgia, on the Black Sea, and it transported approximately 76,000 barrels per day in 2018.
marketing and retail
Chevron markets lubricants, coolants and fuel treatments under the Texaco®, Havoline®, Ursa® and Techron® brands for consumer, commercial and industrial use in Azerbaijan through our authorized distributor.
in the community
Chevron and our partners in the AIOC and the BTC Pipeline are making investments that benefit many communities in Azerbaijan.
The investments have improved the country’s medical facilities, schools and roads. Working with our partners, we’ve provided training for medical staff, supplied medical aid to local residents, and offered microloans to entrepreneurs and training to farmers. We have implemented major development initiatives aimed at building skills and capabilities in local communities, improving people’s access to social infrastructure and helping them generate sustainable livelihoods.
We continue to support the Caspian Compassion Project, which provides free eye examinations, surgery and treatment for residents of Azerbaijan. A team of eye specialists provides free assistance for elderly and disadvantaged people.
Chevron also supports Junior Achievement Azerbaijan by co-sponsoring its School Economics Education Program. The program offers students and teachers economic and business training, thereby helping develop the nation’s workforce. Secondary school and college students learn both practical and theoretical economic principles that foster sound business and entrepreneurial skills and promote financial literacy.
record of achievement
In 1997, Chevron signed an agreement to explore the Absheron Offshore Block, a deepwater structure in the southern Caspian Sea. After conducting a 3-D seismic exploration program, we drilled an exploratory well in the block in 2001 that proved unsuccessful.
Our participation in Azerbaijan’s economy grew significantly when Chevron acquired Unocal in 2005. We took over Unocal’s interest in the AIOC, which produces and develops offshore crude oil reserves in the Caspian Sea from the ACG project. With that, Chevron also became a partner in the BTC Pipeline. In 2006, the pipeline reached a historic milestone with the delivery of its first crude oil to world markets.
Landmark 1, Nizami Street, 96
Baku AZ1010, Azerbaijan
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