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Shah Deniz gasfield Stage 2 development project, Azerbaijan

10th August 2018

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Shah Deniz gasfield Stage 2 development project.

Location
The project is located off the shore of Azerbaijan.

Client
The Shah Deniz consortium, comprising BP as the operator (28.8%), TPAO (19%), Petronas (15.5%), AzSD (10%), SGC Upstream (6.7%), Lukoil (10%), and NICO (10%).

Project Description
Shah Deniz is the first subsea development in the Caspian Sea and is one of the biggest and most complex new energy projects worldwide, comprising major offshore, onshore and pipeline developments.

At plateau, Shah Deniz 2 is expected to incrementally produce 16-billion cubic meters of gas a year.

Together with output from the first phase of development, total production from the Shah Deniz field will be up to 26-billion cubic meters of gas a year and up to 120 000 bbl/d of condensate.

Offshore, Shah Deniz 2 includes 26 subsea wells, 500 km of subsea pipelines and flowlines, as well as two new bridge-linked platforms.

Gas is transported onshore through a 85 km pipeline to the Sangachal terminal near Baku, which has undergone a major expansion to accommodate the new increased gas output.

The project also includes the new South Caucasus pipeline expansion – 428 km of new pipeline in Azerbaijan and 59 km in Georgia, including two new compressor stations – carrying Shah Deniz gas to Turkey.

Potential Job Creation
The project has supported more than 30 000 jobs in Azerbaijan and Georgia.

Value
$28-billion.

Duration
The project was sanctioned in 2013, and took about four-and-a-half years to complete.

Latest Developments
The project started on July 2 this year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project started up in July, on time and on budget.

Contact Details for Project Information
BP press office, tel +44 20 7496 4076 or emailbppress@bp.com.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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