BP Began Gas Production On The Northeastern Flank Of The Shah Deniz Field
BP has begun gas production on the northeastern flank of the Shah Deniz field as part of Stage 2 of the development of this contract area, BP-Azerbaijan (the technical operator of the project is IF-Az) said in a statement.
“Gas production within the framework of Stage-2 of the Shah Deniz project on the north-eastern flank of the field began on February 13. Prior to this, all associated construction work and operational tests on the north-eastern flank were successfully completed and the system was fully put into operation,” the statement says.
According to the company, the northeast flank currently has five wells, two production manifolds, two new flow lines totaling approximately 30 km and several subsea installations connected to the world-class Shah Deniz gas condensate reservoir.
“Currently, the production capacity of the Shah Deniz field is approximately 79 million cubic meters of gas per day or 29 billion cubic meters per year,” the company notes.
According to the company, at the beginning of January 2024, 209 billion cubic meters of gas and 45 million tons of condensate were produced from the Shah Deniz field over the entire period since the beginning of its development (since 2006 – IF). In 2023, 26 billion cubic meters of gas were produced from the field, which is 4% higher than in 2022.
As previously reported, by 2027, wells on the western, southeastern, southwestern and northeastern flanks will be completed and gradually put into operation.
On December 17, 2013, the shareholders of the Shah Deniz consortium signed the final investment decision on Stage 2 of the development of this field in Baku.
The cost of Stage 2 is estimated at $28 billion. The annual production volume within Stage 2 at its peak will be 16 billion cubic meters per year, of which 10 billion are intended for export to Europe, 6 billion to the western regions of Turkey.
Currently, gas production from the Shah Deniz field is carried out from the Alpha platform as part of Stage-1 and from the Bravo platform as part of Stage-2.
The contract for the development of the Shah Deniz field was signed in Baku on June 4, 1996 and ratified by the Milli Majlis on October 17 of the same year. The parties’ share in the contract is currently as follows: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19%), NICO (10%) and Cenub Qaz Dehlizi CJSC (21 .02%). Gas production from the Shah Deniz field began in December 2006.
