BP p.l.c ( BP ). shares are trading lower on Tuesday.

The operator of the Azeri-Chirag-Gunashli (ACG) project announced the start-up of oil production from the new Azeri Central East (ACE) platform as part of the ACG field development in the Azerbaijan sector of the Caspian Sea.

The company’s strategy is to invest in today’s energy system — such as in the development of ACE — as well as the energy system of the future, the company said in a statement.

The ACE platform marks the seventh installation on the ACG field in the Caspian Sea, which commenced production in 1997, yielding over 4.3 billion barrels of oil. Additionally, the BP-operated Shah Deniz gas field boasts two more platforms in the region.

The ACE platform and its associated facilities are crafted to handle a maximum of 100,000 barrels of oil per day (bpd), with an estimated lifetime production of up to 300 million barrels. 

Oil will traverse through the platform’s processing facilities before being exported approximately 130 kilometers to the onshore Sangachal terminal via a new in-field pipeline connected to an existing 30-inch subsea export line.

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Initial production from ACE originates from the first well initiated from the platform towards the end of last year. 

ACE’s production is projected to escalate through 2024 to approximately 24,000 bpd as two additional planned wells are drilled, completed, and activated.

Ewan Drummond, BP’s senior vice president, Projects, said: “I’m incredibly proud of the team at BP for safely delivering the first BP-operated offshore platform fully controlled from onshore. This establishes a new benchmark for innovative engineering and competitive project delivery for our company and the wider industry.”

“This is the ninth world-class production platform that we have built, installed, and are operating offshore Azerbaijan,” said Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkiye.

Price Action: BP shares are trading lower by 1.28% to $38.57 at publication Tuesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.