The BP-led consortium that is developing the Azeri-Chirag-Gunashli fields in the Caspian Sea has given approval to begin development of Phase 2. Phase 2 of the development is expected to cost approximately $5.2 billion and produce approximately 1.6 billion barrels of oil beginning in mid-2006. Production from Phase 2 is scheduled to be transported using the Bak-Tbilisi-Ceyhan Pipeline. The pipeline construction is expected to take approximately thirty months to complete. The pipeline will be started in conjunction with Phase 2 on mid-September.
The Azeri-Chirag-Gunashli oil field complex lies approximately 120 kilometers off the coast of Azerbaijan in approximately 120 meters of water. Partners in the project are BP as operator, Socar, Unocal, Lukoil, Statoil, ExxonMobil, TPAO, Devon, Itochu and Delta Hess.